Question: complete E.23.17 all parts using excel SLFULL a. Prepare a responsibility report for the b. Assume the division is an investment center, and average opera
complete E.23.17 all parts using excelSLFULL a. Prepare a responsibility report for the b. Assume the division is an investment center, and average opera noncontrollable fined casts are controllable at the investment center level. Compute RUIU Compute ROI for current possible future changes. actual amounts. 23.17 (L04), AP The South Division of Wiig Company reported the following data for the current year. Sales $3,000,000 Variable costs 1,950,000 Controllable fixed costs 600,000 Average operating assets 5,000,000 op management is unhappy with the investment center's return on investment (ROI). It asks the man er 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 $300,000 with no change in the contribution margin percentage. 2. Reduce variable costs by $150,000. 3. Reduce average operating assets by 4%. Instructions a. Compute the return on investment (ROI) for the current year. b. Using the ROI formula, compute the Rol under each of the proposed courses of action. (Round to an decimal)
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