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The service division of Retro Industries reported the following results for 2022. Sales $570,000 Variable costs 342,000 Controllable fixed costs. 72,960 Average operating assets
The service division of Retro Industries reported the following results for 2022. Sales $570,000 Variable costs 342,000 Controllable fixed costs. 72,960 Average operating assets 456,000 Management is considering the following independent courses of action in 2023 in order to maximize the return on investment for this division. 2. Reduce average operating assets by $56,000, with no change in controllable margin. 2. Increase sales by $88,920, with no change in the contribution margin percentage. Activate Wins
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