Question
The service division of Raney Industries reported the following results for 2017. Sales $549,200 Variable costs 329,520 Controllable fixed costs 59,600 Average operating assets 675,600
The service division of Raney Industries reported the following results for 2017. Sales $549,200 Variable costs 329,520 Controllable fixed costs 59,600 Average operating assets 675,600 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 $125,100, with no change in controllable margin. 2. Increase sales $107,600, with no change in the contribution margin percentage.
Compute the controllable margin and the return on investment for 2017. (Round ROI to 1 decimal place, e.g. 1.5.)
EX Your answer is incorrect. Try again. Compute the controllable margin and the expected return on investment for each proposed alternative. (Round ROI to 1 decimal place, e.g. 1.5.) Alternative 1 Alternative 2 The controllable margin The expected return on investment LINK TO TEXTStep by Step Solution
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