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Betsy Union is the Swifty Corporation manager and her performance is evaluated by executive management based on Division ROI. The current controllable margin for Swifty

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Betsy Union is the Swifty Corporation manager and her performance is evaluated by executive management based on Division ROI. The current controllable margin for Swifty Corporation is $59000. Its current operating assets total $230000. 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? It will remain unchanged A decrease of 3.8% An increase of 1.4% A decrease of 1.4%

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