Concord Corporation recorded operating data for its Waterhole division for the year. Concord requires a $8\mathrm{.}00\%$ rate of return.

Sales

$$494000$

Controllable margin

$86000$

Total average assets

$344000$

Fixed costs

$26000$

Residual income

$47000$

Suppose Concord experiences an increase of $$47000$ in controllable fixed costs. Will the new ROI be acceptable?

There is not enough information to determine the new ROI.

Yes. The new ROI is still above the required ROI.

Yes. The ROI will remain at $25\%$ which exceeds the required ROI.

No$.$ The ROI drops to less than $8\mathrm{.}00\%.$