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Benet Division of Waterway Company's operating results include: controllable margin, $221000; sales $2800000; and operating assets, $850000. The Benet Division's ROI is 26%. Management is
Benet Division of Waterway Company's operating results include: controllable margin, $221000; sales $2800000; and operating assets, $850000. The Benet Division's ROI is 26%. 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? O Yes, because ROI will increase. O No, because a loss will be incurred. O No, because ROI will decrease. O Yes, because additional sales always mean more customers.
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