The service division of Brady Industries reported the following results for 2012

Sales                                                     $500,000
Variable costs                                         300,000
Controllable fixed costs                           75,000
Average operating assets                       450,000

Management is considering the following independent courses of action in 2013 in order to maximize the return on investment for this division.
1. Reduce average operating assets by $50,000, with no change in controllable margin.
2. Increase sales $100,000, with no change in the contribution margin percentage.
  (a) Compute the controllable margin and the return on investment for 2012. (b) Compute the controllable margin and the expected return on investment for each proposed alternative.