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The area manager of the Red, White, and Brew Restaurants is considering two possible expansion alternatives. The required investments, expected controllable margins, and the ROIs

The area manager of the Red, White, and Brew Restaurants is considering two possible expansion alternatives. The required investments, expected controllable margins, and the ROIs of each are as follows:

Project

Investment

Controllable Margin

ROI

Phoenix

$120000$3000025%

Chicago

$540000$500009.25%

The Red, White, and Brew segment has currently $2000000 in invested capital and a controllable margin of $250000. Which one of following projects will increase the Red, White, and Brew divisions ROI?

Both the Phoenix and Chicago options

Only the Phoenix option

Only the Chicago option

Neither the Phoenix nor the Chicago options

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