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The service division of Raney Industries reported the following results for 2020. Sales Variable costs Controllable fixed costs Average operating assets $494,000 296,400 69,200 642,000
The service division of Raney Industries reported the following results for 2020. Sales Variable costs Controllable fixed costs Average operating assets $494,000 296,400 69,200 642,000 Management is considering the following independent courses of action in 2021 in order to maximize the return on investment for this division. 1. Reduce average operating assets by $128,400, with no change in controllable margin. 2. Increase sales $113,955, with no change in the contribution margin percentage. Compute the controllable margin and the return on investment for 2020. Controllable margin Return on investment for 2020 LINK TO TEXT Compute the controllable margin and the expected return on investment for 2021 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 Click if you would like to Show Work for this question: Open Show Work
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