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Question Three: The service division of Al Hinai Industries reported the following results for 2021. Sales Variable costs Controllable fixed costs Average operating assets OMR
Question Three: The service division of Al Hinai Industries reported the following results for 2021. Sales Variable costs Controllable fixed costs Average operating assets OMR 500,000 300,000 75,000 625,000 Required: 1. Based on the above data, compute the return on investment (ROI) for Al Hinai Industries. (4 marks) 2. What is the expected ROI if the average operating assets is reduced by OMR125,000, assuming that the controllable margin remains unchanged? (2 marks) 3. Compute the controllable margin and the expected ROI if the sales are increased to OMR100,000 and the contribution margin percentage remains unchanged at 40%. (6 marks)
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