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The service division of Raney Industries reported the following results for 2020 Sales $478.000 Variable costs 286,800 Controllable foed costs 85,230 Average operating assets 563.000
The service division of Raney Industries reported the following results for 2020 Sales $478.000 Variable costs 286,800 Controllable foed costs 85,230 Average operating assets 563.000 Management is considering the following independent courses of action in 2021 in order to macimize the return on investment for this division 1. Reduce average operating assets by $178,500, with no change in controllable margin Increase sales $129.285, with no change in the contribution margin percentage 2 (a) Your answer is correct Compute the controllable margin and the return on investment for 2020 Controllable margin $ 125970 Return on investment for 2020 19 56 e Textbook and Media Attempts: 2 of 3 used Using multiple attempts will impact your score 596 score reduction after attempt 2 (6) Compute the controllable margin and the expected return on investment for 2021 for each proposed ternative Round Roto 1 decimal places 1.5%) Alternative 1 Alternative 2 The controllable margin The spected return on investment
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