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Current Attempt in Progress Colt Division had the following results for the year just ended: Sales Contribution margin $852,300 340,900 Controllable margin Average operating assets

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Current Attempt in Progress Colt Division had the following results for the year just ended: Sales Contribution margin $852,300 340,900 Controllable margin Average operating assets $68.170 340,000 Colt is considering a new product line that would involve the following Sales Contribution margin $170,400 68.170 Controllable margin Average operating assets $13.600 85.000 Coits parent company. North Inc. has a company-wide ROI of 1436 and pays bonuses based on divisional ROL Determine the effect on Colts Roufit Introduces the new product line. indre CS RO would ceitis manager be encouraged to intrecuce the new product line! No -17 Determine the effect on Colt's ROI if it introduces the new product line. Colts RI Increases Would Colt's managers be encouraged to introduce the new product line? Determine the effect on North Inc's Rolf Colt introduces the new product line North inc's ROI Would the top managers of North Inc. want to introduce the new product line? Decreases Increases Assume a required rate ofretum of 10 onderational assets invested in each division Determine the effect on Colt's residual came introduces the new product els residual income Hoe doesbeendoused to introduce the newereduct

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