The Appliance Division of Malone Manufacturing Company reported the following results for 2020 Sales $4,000,000 Variable costs 3,200,000 Controllable fixed costs 300,000 Average operating assets 2,000,000 Required rate of return 12% Management is considering the following independent alternative courses of action in 2021 in order to maximize the return on investment for the division. 1. Reduce controllable fixed costs by 20% with no change in sales or variable costs. 2. Reduce average operating assets by 20% with no change in controllable margin. 3. Increase sales $400,000 with no change in the contribution margin percentage. Compute the return on investment and the residual income for 2020 (2points). Which alternative maximizes the performance of the investment center (3points)