2 The Atlantic Division of Stark Productions Company reported the following results for 2012: Sales $4,000,000 Variable costs 3,200,000 Controllable 300,000 Average operi 2,000,000 Management is considering the following independent alternative courses of action in 2013 in order to maximize the return on investment for the division. 1 Reduce controllable fixed costs by 20% with no change in sales or variable costs. 2 Reduce average operating assets by 20% with no change in controllable margin. 3 Increase sales $400,000 with no change in the contribution margin percentage. Instructions (a) (b) Compute the return on investment for 2012 Compute the expected return on investment for each of the alternative courses of action. 2 The Atlantic Division of Stark Productions Company reported the following results for 2012: Sales $4,000,000 Variable costs 3,200,000 Controllable 300,000 Average oper 2,000,000 Management is considering the following independent alternative courses of action in 2013 in order to maximize the return on investment for the division 1 Reduce controllable fixed costs by 20% with no change in sales or variable costs. 2 Reduce average operating assets by 20% with no change in controllable margin. 3 Increase sales $400,000 with no change in the contribution margin percentage. Instructions (a) Compute the return on investment for 2012 Compute the expected return on investment for each of the alternative courses of action