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The South Division of Monty Company reported the following data for the current year. Tap management is unhappy with the investment center's return an investment
The South Division of Monty Company reported the following data for the current year. Tap management is unhappy with the investment center's return an investment (ROI). It asks the manager of the South Division to submit p of action. 1. Increase sales by $300,000 with no change in the contribution margin percentage. 2. Reduce variatle costs by $155,000, 3. Reduce average operating assets by 3.00%. (a) Compute the return on investrnent \{ROIl for the current year. (Round ROI to 2 decimal places, es, 1.57\%,) Return on Investment \% (b) Using the ROI equation, compute the ROI under each of the proposed courses of action. (Round ROI to 2 decimal places, eg. 1.57\%)
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