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x This is the current ROI. The new investment and additional income must be added in to determine the new ROI. Bajalia Company compiled the
x This is the current ROI. The new investment and additional income must be added in to determine the new ROI. Bajalia Company compiled the following information for the year: Average operating assets at the begining of the year Controllable margin $6,400,000 $800,000 Bajalia's corporate office expects the division to earn a minimum return of 10%. If Bajalia buys a new machine costing $120,000 that is expected to generate additional controllable margin of $12,000, what happens to ROI? It will be 10% It will increase to 12.57%. It will be 12.5%. It will increase to 12.69%
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