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Benet Division of Crane Company's operating results include: controllable margin, $162500; sales $2600000; and operating assets, $650000. The Benet Division's ROI is 25%. Management is
Benet Division of Crane Company's operating results include: controllable margin, $162500; sales $2600000; and operating assets, $650000. The Benet Division's ROI is 25%. Management is considering a project with sales of $100000, variable expenses of $60000, fixed costs of $40000; and an asset investment of $150000. Should management accept this new project? No, because a loss will be incurred. Yes, because additional sales always mean more customers. Yes, because ROI will increase. No, because ROI will decrease
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