A company's operating results include: controllable margin of $600,000, sales totaling $4,800,000, and average operating assets of $2,000,000. The company is considering a project with sales of $400,000, expenses of $344,000, and an investment of average operating assets of $800,000. The company's required rate of return is 12%.

Should the company accept this project?

a.

Yes, ROI will drop by 6.6% which is still above the minimum required rate of return.

b.No, the return is less than the required rate of 12%.

c.

None of the available answer choices

d.

Yes, ROI still exceeds the cost of capital.

e.

No, ROI will decrease to 7%.