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

Sales		$600,000
Variable costs		360,000
Controllable fixed costs		75,000
Average operating assets		750,000

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 $150,000, with no change in controllable margin.
2.		Increase sales $120,000, with no change in the contribution margin percentage.

(a)

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

Controllable margin		$enter a dollar amount
Return on investment for 2022		enter percentages	%

Attempts: 1 of 1 used

(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	%