The South Division of Wiig Company reported the following data for the current year.

Sales

$3,043,000Variable costs

1,996,208Controllable fixed costs

607,800Average operating assets

4,968,400

Top management is unhappy with the investment centers return on investment (ROI). 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 $319,000with no change in the contribution margin percentage.

2.Reduce variable costs by $151,700.

3.Reduce average operating assets by4%.

(a) Compute the return on investment (ROI) for the current year. (Round ROI to 1 decimal place, e.g. 1.5.)

Return on Investment: _____%

(b) Using the ROI formula, compute the ROI under each of the proposed courses of action. (Round ROI to 1 decimal place, e.g. 1.5.)

Return on investment

Action1 _____%

Action2 _____%

Action3 _____%