The Morton Divison, an investment center of Bates Manufacturing Company, reported the following data for the current year.

Sales $3,000,000

Variable costs 1,800,000

Controllable fixed costs 200,000

Noncontrollabl fixed costs 300,000

Average operating assets 5,000,000

Top management is unhappy with the center's return on investment. The manager of Morton Division believes ROI can be improved by the following independed alternatives:

1. Increasae sales by 10% with no change in the contribution margin ratio

2. Reduce controllable and noncontrollable fixed costs 25% each

3. Reduce average operating assets by 20%

INSTRUCTIONS: (A) Compute the return on investment for the current year (B) Compute ROI under each alternative