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Cruise Division of Sheffield's Company's operating results include: controllable margin, $252000; sales, $1750000; and operating assets, $1200000. The Cruise Division's ROI is 21%. Management is
Cruise Division of Sheffield's Company's operating results include: controllable margin, $252000; sales, $1750000; and operating assets, $1200000. The Cruise Division's ROI is 21%. Management is considering a project with sales of $125000, variable expenses of $74800, controllable fixed costs of $50200; and an asset investment of $90900. Should management accept this new project? O No, since ROI will be lowered. Yes, since ROI will increase. Yes, since additional sales always mean more customers. O No, since a loss will be incurred
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