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Management is consideringthe following independent alternative courses of action in 2021 in order to maximize the return on investment for the division. 1. Reduce controllable
Management is consideringthe following independent alternative courses of action in 2021 in order to maximize the return on investment for the division. 1. Reduce controllable xed costs by 50% with no change in sales or variable costs. 2. Reduce average operating assets by 30% with no change in controllable margin. 3. Increase sales $200,000 with no change in the contribution margin percentage. Instructions a) Calculate the return on investment for 2022. b) Calculate the expected return on investment for each of the alternative courses of action
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