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The green division of Campana Company reported the following data for the current year: Sales $3,036,000 Variable costs 2,003,760 Controllable fixed costs 607,200 Average operating
The green division of Campana Company reported the following data for the current year: Sales $3,036,000 Variable costs 2,003,760 Controllable fixed costs 607,200 Average operating assets 5,060,000 Top management is unhappy with the investment centres return on investment. It asks the manager of the green division to submit plans to improve the ROI in the next year. The manager believes it is reasonable to consider each of the following independent courses of action. How would I calculate the return on investment for the year. Also if increases in sales by $506,000 with no change in contribution margin percentage occurs how do I find the new ROI. If variable costs are reduced by $151,800 how do i find the new ROI and if the average operating assets are reduced by 5% how do I find the new ROI
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