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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 $498,000 298,800 66,320 604,000
The service division of Raney Industries reported the following results for 2020. Sales Variable costs Controllable fixed costs Average operating assets $498,000 298,800 66,320 604,000 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 $72,480, with no change in controllable margin Increase sales $86,070, with no change in the contribution margin percentage 2 Compute the controllable margin and the return on investment for 2020. $ Controllable margin 132880 22 de Return on investment for 2020 e Textbook and Media Attempts: 1 of 3 used (b) Compute the controllable margin and the expected return on investment for 2021 for each proposed alternative. (Round ROI to 1 decimal place, eg. 1.5%) Alternative 1 Alternative 2 The controllable margin $ % %6 The expected return on investment
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