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Concord Company manufactures a variety of tools and industrial equipment. The company operates through three divisions.

Each division is an irvestment center. Operating data for the Home Division for the year ended December $31,2022,$ and

relevant budget data are as follows.

Average operating assets for the year for the Home Division were $$2,000,000,$ which was also the budgeted amount.

$($c$)$

Your answer is partially correct.

Compute the expected ROI in $2022$ for the Home Division, assuming the following independent changes to actual data.

$($Round ROI to $2$ decimal places, e$.$g$.1\mathrm{.}57\%.)$

$(1)$ Variable selling and administrative expenses are decreased by $7\%$

$(2)$ Average operating assets are decreased by $20\mathrm{.}0\%.$

$(3)$ Sales are increased by $$200,000,$ and this increase is expected to increase

contribution margin by $$86,000.$

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