Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Alternative 2 with explanation . Do It! Review 10-4 The service division of Raney Industries reported the following results for 2020. Sales Variable costs Controllable
Alternative 2 with explanation .
Do It! Review 10-4 The service division of Raney Industries reported the following results for 2020. Sales Variable costs Controllable fixed costs Average operating assets $543,000 325,800 103,800 630,000 Management is considering the following independent courses of action in 2021 in order to maximize the return on investment for this division. 1. Reduce average operating assets by $210,000, with no change in controllable margin. 2. Increase sales $151,200, with no change in the contribution margin percentage. Your answer is partially correct. Try again. Compute the controllable margin and the expected return on investment for 2021 for each proposed alternative. (Round ROI to 1 decimal place, e.g. 1.5%.) Alternative 1 Alternative 2 The controllable margin 113400 264600 The expected return on investment 271 % 4211 % Click if you would like to Show Work for this question: Open Show WorkStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started