7. The following information pertains to the Midwest Division of Clearly Natural Company:

Net Sales $25,000 Variable Costs: Cost of merchandise sold 7,200 Operating expenses 2,700 Fixed costs: Controllable by segment manager 2,400 Controllable by others 1,000 Unallocated costs 600

The contribution controllable by a segment manager is ________. A) $7,100 B) $7,700 C) $11,100 D) $12,700 8. Jacob Company's revenues for the year are $300 and average invested capital for the year is $250. Expenses are currently 40% of revenues. Jacob Company's current return on investment is ________. A) 72% B) 62.5% C) 80% D) 100%