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The green division of Campana Company reported the following data for the current year: Sales $2,982,000 Variable costs 1,938,300 Controllable fixed costs 596,400 Average operating

The green division of Campana Company reported the following data for the current year:

Sales $2,982,000
Variable costs 1,938,300
Controllable fixed costs 596,400
Average operating assets 4,970,000

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.

1. Increase sales by $497,000 with no change in the contribution margin percentage.
2. Reduce variable costs by $149,100.
3. Reduce average operating assets by 4%.

Calculate the return on investment for the current year. (Round ROI to 1 decimal place, e.g. 1.5%.)

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