The service division of Grouper Industries reported the following results for 2022.

Sales		$460,000
Variable costs		276,000
Controllable fixed costs		46,000
Average operating assets		575,000

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 $115,000, with no change in controllable margin.
2.		Increase sales $92,000, with no change in the contribution margin percentage.

(a)

Compute the controllable margin and the return on investment for 2022.

Controllable margin		$138000
Return on investment for 2022		24	%

(b)

Compute the controllable margin and the expected return on investment for 2023 for each proposed alternative. (Round ROI to 1 decimal place, e.g. 1.5%.)

		Alternative 1			Alternative 2
The controllable margin		$enter a dollar amount			$enter a dollar amount
The expected return on investment		enter percentages rounded to 1 decimal place	%		enter percentages rounded to 1 decimal place	%