The Atlantic Division of Oriole Productions Company reported the following results for 2022: Sales Variable costs Controllable fixed costs Average operating assets 1. Management is considering the following independent alternative courses of action in 2023 in order to maximize the return on investment for the division. 2. 3. (a) $4,032,000 3,213,504 314,000 2,514,000 Reduce controllable fixed costs by 10% with no change in sales or variable costs. Reduce average operating assets by 10% with no change in controllable margin. Increase sales $500,000 with no change in the contribution margin percentage. Return on Investment Compute the return on investment for 2022. (Round answer to 1 decimal place, e.g. 52.5.) %
The Atlantic Division of Oriole Productions Company reported the following results for 2022: Sales Variable costs Controllable fixed costs Average operating assets 1. Management is considering the following independent alternative courses of action in 2023 in order to maximize the return on investment for the division. 2. 3. (a) $4,032,000 3,213,504 314,000 2,514,000 Reduce controllable fixed costs by 10% with no change in sales or variable costs. Reduce average operating assets by 10% with no change in controllable margin. Increase sales $500,000 with no change in the contribution margin percentage. Return on Investment Compute the return on investment for 2022. (Round answer to 1 decimal place, e.g. 52.5.) %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The Atlantic Division of Oriole Productions Company reported the following results for 2022:
Sales
Variable costs
Controllable fixed costs
Average operating assets
Management is considering the following independent alternative courses of action in 2023 in order to maximize the return on
investment for the division.
1.
2.
3.
(a)
$4,032,000
3,213,504
314,000
2,514,000
Reduce controllable fixed costs by 10% with no change in sales or variable costs..
Reduce average operating assets by 10% with no change in controllable margin.
Increase sales $500,000 with no change in the contribution margin percentage.
Compute the return on investment for 2022. (Round answer to 1 decimal place, e.g. 52.5.)
Return on Investment
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(b)
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