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The area manager of the Steak House Restaurants is considering two possible expansion alternatives. The required investments, expected controllable margins, and the ROIs of each
The area manager of the Steak House 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 Winnipeg $300,000 33.33% Regina $700,000 28.57% The Steak House segment has currently $5,000,000 in invested capital and a controllable margin of $1,500,000. Which one of following projects will increase the Steak House division's current ROI? $100,000 $200,000 a. both the Winnipeg and Regina options O b. only the Winnipeg option O c. only the Regina option O d. neither the Winnipeg nor the Regina options O
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