Accounting The current controllable margin for Henry Division is $93000 Its current operating assets are $300000 The division is considering purchasing equipment for $90000 that will increase annual controllable margin by an estimated $12000 If the equipment is purchased, what will happen to the return on investment for Henry Division A decrease of 7 1 A decrease of 12 1 An increase of 12 9 A decrease of 4 1 I keep getting 17 43 and then subtract 21 and my answers are not matching any of the above The following information is available for Halle Department Stores Average operating assets $700,000 Controllable margin 68,000 Contribution margin 190,000 Minimum rate of return 8 How much is Halle's residual income $12000 $134000 $632000 $56000

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Question: Accounting The current controllable margin for Henry Division is $93000. Its current operating assets are $300000. The division is considering purchasing equipment for $90000 that

Accounting The current controllable margin for Henry Division is $93000. Its current operating assets are $300000. The division is considering purchasing equipment for $90000 that will increase annual controllable margin by an estimated $12000. If the equipment is purchased, what will happen to the return on investment for Henry Division?

A decrease of 7.1%
A decrease of 12.1%
An increase of 12.9%
A decrease of 4.1%

I keep getting 17.43% and then subtract 21% and my answers are not matching any of the above.

The following information is available for Halle Department Stores:

Average operating assets

$700,000

Controllable margin	68,000
Contribution margin	190,000
Minimum rate of return	8%

How much is Halle's residual income?

$12000
$134000
$632000
$56000.

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