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Betsy Union is the Bonita Industries manager and her performance is evaluated by executive management based on Division ROI. The current controllable margin for Bonita
Betsy Union is the Bonita Industries manager and her performance is evaluated by executive management based on Division ROI. The current controllable margin for Bonita Industries is $59000. Its current operating assets total $240000. The division is considering purchasing equipment for $40000 that will increase contribution margin by an estimated $14000, with annual depreciation of $14000. If the equipment is purchased, how will the return on investment for the division change? O An increase of 1.5% A decrease of 3.5% O A decrease of 1.5% It will remain unchanged
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