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The service division of Blue Spruce Industries reported the following results for 2022. Management is considering the following independent courses of action in 2023 in
The service division of Blue Spruce Industries reported the following results for 2022. Management is considering the following independent courses of action in 2023 in order to maximize the return on investment for this division. 1. Reduce average operating assets b $102,500, with no change in controllable margin. 2. Increase sales $82.000, with no change in the contribution margin percentage. Compute the controllable margin and the return on investment for 2022. Controllable margin Return on investment for 2022 % Compute the controllable margin and the expected return on investment for 2023 for each proposed alternative. (Round ROI to 1 lecimal place, eg. 1.5\%.)
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