Compute ROI for current year and for possible future changes. E10.17 (LO 4), AP The South Division of Wiig Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets $3,000,000 1,950,000 600,000 5,000,000 Top management is unhappy with the investment center's return on investment (ROI). It asks the man- ager 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 6.25%. Instructions a. Compute the return on investment (ROI) for the current year. b. Using the ROI equation, compute the ROI under each of the proposed courses of action. (Round to one decimal.)

ruo.17 (LO 4), AP The South Division of Wigg Company reported the following data for the currentyear. Top management is unhappy with the imesiment center's tetum on imvestrient (ROI). It asks the manager of the South Dlvision to submit plans to improve ROI in the next you. The manager belleves it is feasible to consider the following independent coursen 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 openting assets by 6.25%, instructions a. Compute the return on investment (ROI) for the current year. b. Using the ROI equation, compute the ROI under each of the proposed courses of action. (Round to one decimal)