Current Attempt in Progress The Atlantic Division of Oriole Productions Company reported the following results for 2022: Sales Variable costs $4,088,000 3,225,432 Controllable fixed costs 325,000 Average operating assets 2,525,000 Management is considering the following independent alternative courses of action in 2023 in order to maximize the return on investment for the division. 1 Reduce controllable fixed costs by 10% with no change in sales or variable costs. 2. Reduce average operating assets by 10% with no change in controllable margin. 3. Increase sales $500,000 with no change in the contribution margin percentage. (a) Compute the return on investment for 2022. (Round answer to 1 decimal place, e.g. 52.5.) Return on Investment Save for Later 96
Current Attempt in Progress The Atlantic Division of Oriole Productions Company reported the following results for 2022: Sales Variable costs $4,088,000 3,225,432 Controllable fixed costs 325,000 Average operating assets 2,525,000 Management is considering the following independent alternative courses of action in 2023 in order to maximize the return on investment for the division. 1 Reduce controllable fixed costs by 10% with no change in sales or variable costs. 2. Reduce average operating assets by 10% with no change in controllable margin. 3. Increase sales $500,000 with no change in the contribution margin percentage. (a) Compute the return on investment for 2022. (Round answer to 1 decimal place, e.g. 52.5.) Return on Investment Save for Later 96
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Current Attempt in Progress
The Atlantic Division of Oriole Productions Company reported the following results for 2022:
Sales
Variable costs
$4,088,000
3,225,432
Controllable fixed costs
325,000
Average operating assets
2,525,000
Management is considering the following independent alternative courses of action in 2023 in order to maximize the return on
investment for the division.
1 Reduce controllable fixed costs by 10% with no change in sales or variable costs.
2.
Reduce average operating assets by 10% with no change in controllable margin.
3.
Increase sales $500,000 with no change in the contribution margin percentage.
(a)
Compute the return on investment for 2022. (Round answer to 1 decimal place, e.g. 52.5.)
Return on Investment
Save for Later
96
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