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The service division of Marigold Industries reported the following results for 2017 Sales Variable costs Controllable fixed costs Average operating assets $475,000 285,000 68,500 675,000

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The service division of Marigold Industries reported the following results for 2017 Sales Variable costs Controllable fixed costs Average operating assets $475,000 285,000 68,500 675,000 Management is considering the following independent courses of action in 2018 in order to maximize the return on investment for this division 1. Reduce average operating assets by $135,000, with no change in controllable margin. 2. Increase sales $95,000, with no change in the contribution margin percentage. Your answer is correct. Compute the controllable margin and the return on investment for 2017. (Round ROI to 2 decimal place, eg. 1.56.) Controllable margin $ 121500 Return on investment for 2017 18 % Compute the controllable margin and the expected return on investment for each proposed alternative. (Round ROI to 2 decimal place, e.g. 1.56.) Alternative 1 Alternative 2 The controllable margin $ The expected return on investment % 96

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