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The South Division of Crane Company reported the following data for the current year. Top managenent is unhappy with the investment center's return on investment
The South Division of Crane Company reported the following data for the current year. Top managenent is unhappy with the investment center's return on investment 'ROl), It asks the manager of the South Division to subm 1 Increase siles by $300,000 with no change in the contritutian margin percertinge. 2. Reduce variable costs by $150000. 3. Reduce average operating assets by 4.00% (a) Compute the retum on irwestment [Roll for the current year. (Round ROV to 2 dech d places, eg. 157\%) Return on Inwestment (b) Using the ROI formula, compute the ROI under each of the proposed courses of acticr. (Round ROP to 2 decimal places, ey. 1.57\%.)
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