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The West Division of Nieto Company reported the following data for the current year. Top management is unhappy with the investment center's return on investment
The West Division of Nieto Company reported the following data for the current year. Top management is unhappy with the investment center's return on investment (ROI). It asks the manager of the West 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. Increase sales by dollar 320,820 with no change in the contribution margin percentage. Reduce variable costs by dollar 107,480. Reduce average operating assets by 4 percentage. Compute the return on investment (ROI) for the current year. (Round answer to 1 decimal places, e.g. 25.1percentage.) Return on Investment percentage Using the ROI formula, compute the ROI under each of the proposed courses of action. (Round answers to 1 decimal place, e.g. 25.1percentage.) Return on investment Action 1 percentage Action 2 percentage Action 3 percentage
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