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The South Division of Riverbed Company reported the following data for the current year. Top management is unhappy with the imvestment center's return on investment

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The South Division of Riverbed Company reported the following data for the current year. Top management is unhappy with the imvestment center's return on investment (RO)). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action. 1. Increase sales by $300,000 withno change in the contribution margin percentage. 2. Reduce variable costs by $155,000. 3. Reduce average operating assets by 4.00%. (a) Compute the return on investment (ROl) for the current year. (Round ROl to 2 decimal places, eg. 1.57\%. Return on Imestment 9 (b) Using the ROI equation, compute the ROl under each of the proposed courses of action. (Round ROI to 2 decimal places, es. 1.57% )

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