Question
The service division of Raney Industries reported the following results for 2017. Sales $554,000 Variable costs 332,400 Controllable fixed costs 68,300 Average operating assets 625,200
The service division of Raney Industries reported the following results for 2017.
| Sales | $554,000 |
| Variable costs | 332,400 |
| Controllable fixed costs | 68,300 |
| Average operating assets | 625,200 |
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 $122,400, with no change in controllable margin. |
| 2. | Increase sales $105,700, with no change in the contribution margin percentage. |
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The Financial Numbers Game
Authors: Charles W Mulford, Eugene E Comiskey
1st Edition
0471770736, 9780471770732
