A sales and marketing company partially details the following financial information comparing current 2011 vs. Budget 2012: Actual 12/31/2011 Original Budget 12/31/2012 Sales 480,000 504,000 Variable Cost 222,000 233,000 Contribution margin 258,000 271,000 Fixed cost 210,000 216,000 Operating Income 48,000 55,000 Cash 65,000 72,000 Accounts Receivable 98,000 90,000 Inventory 100,000 105,000 Equipment 134,000 134,000 Accumulated Depreciation-Equipment (120,000) (132,000) 1- Calculate the ROI for the 2012 budget and the previous period 2011.

During the first quarter of 2012, the marketing manager found an opportunity to increase sales by about $100,000 if he invested about $22,000 in advertising. To support the increase in sales, some $33,000 in additional expenses are estimated, which include investing in a Van to support the increase in product distribution volume. The van costs $28,000 and its depreciation for the first year would be $7,000. a-Prepare the ROI by adjusting the original budget by adding this new data b- Submit a sheet showing the 2011 Actual, 2012 Original Budget and 2012 Adjusted Budget. Management the behavior of each period and compare it to make a decision.