Question
The service division of Concord Industries reported the following results for 2022. Sales $570,000 Variable costs 342,000 Controllable fixed costs 99,750 Average operating assets 712,500
The service division of Concord Industries reported the following results for 2022.
| Sales | $570,000 | |
| Variable costs | 342,000 | |
| Controllable fixed costs | 99,750 | |
| Average operating assets | 712,500 |
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 by $142,500, with no change in controllable margin. | |
| 2. | Increase sales $114,000, with no change in the contribution margin percentage. |
Compute the controllable margin and the return on investment for 2022.
| Controllable margin
|
|---|
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Forecasting Volatility In The Financial Markets
Authors: Stephen Satchell, John Knight
2nd Edition
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