APTER 22 Budgetary Control and Responsibility Accounting DI for the current E22-13 The binding division of Canada Boardz Corp. reported the following data for the current year: possible future Sales $4,000,000 Variable costs 2,400,000 Controllable fixed costs 900,000 Average operating assets 6,150,000 Top management is unhappy with the investment centre's return on investment. It asks the manager of the binding division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the follow- ing independent courses of action: 1. Increase sales by $360,000 with no change in the contribution margin percentage. 2. Reduce variable costs by $120,000. 3. Reduce average operating assets by 5%. Instructions (a) Calculate the return on investment for the current year. (b) Using the ROI formula, calculate the ROI under each of the proposed courses of action. (Round to one decimal.) Problems: Set A