Just comparing

10) The current controllable margin for Stom Division is S124,000. Its current operating assets are $400,000. The division is considering purchasing equipment for $120,000 that will increase annual controllable margin by an estimated S20,000. If the equipment is purchased, what will happen to the return on investment for Stom Division? a. b. C. d. An increase of 16.1% A decrease of 13.3% A decrease of 3.3% A decrease of 7.2%