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Optimus Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for
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Compute the expected ROI in 2020 for the Home Division, assuming the following independent changes to actual data. (Round ROI to 2 decimal places, e.g. 1.57%.)
The expected ROI | |||||
(1) | Variable cost of goods sold is decreased by 7%. | % | |||
(2) | Average operating assets are decreased by 20.0%. | % | |||
(3) | Sales are increased by $201,000, and this increase is expected to increase contribution margin by $84,000. | % |
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