Sales Variable costs Controllable fixed costs Average operating assets 1 2 3 Top management is unhappy with the investment center's return on investment (ROG it asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action $2,950,000 (a) Compute the return 1,976,500 600,000 5.000.000 Increase sales by $300,000 with no change in the contribution margin percentage Reduce variable costs by $155.000 Reduce average operating sets by 300% Return on Investment investment (RO0 for the current year (Round ROI o decimal places, s 1.57%) IN Using the ROI equation compute the ROI under each of the proposed courses of action (Round ROI to 2 decimal places, eg 1.57%) Return on investment

Sales Variable costs Controllable fixed costs Average operating assets 1 2 3 Top management is unhappy with the investment center's return on investment (ROG it asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action $2,950,000 (a) Compute the return 1,976,500 600,000 5.000.000 Increase sales by $300,000 with no change in the contribution margin percentage Reduce variable costs by $155.000 Reduce average operating sets by 300% Return on Investment investment (RO0 for the current year (Round ROI o decimal places, s 1.57%) IN Using the ROI equation compute the ROI under each of the proposed courses of action (Round ROI to 2 decimal places, eg 1.57%) Return on investment

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Accounting - ROI
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