Controllable fixed costs $,590,000$

Average operating assets $,5,000,000$

Top management is unhappy with the investment center's return on investment $($ROI$).$ It asks the manager 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.

Increase sales by $$300,000$ with no change in the contribution margin percentage.

Reduce variable costs by $$155,000.$

Reduce average operating assets by $4\mathrm{.}00\%.$

$($a$)$ Compute the return on investment $($ROI$)$ for the current year. $($Round ROI to $2$ decimal places, e$.$g$.1\mathrm{.}57\%.)$

Return on Investment

$\%$

$($b$)$ Using the ROI equation, compute the ROI under each of the proposed courses of action. $($Round ROI to $2$ decimal places, e$.$g$.1\mathrm{.}57\%.)$

Return on investment

Action $1$

$\%$

Action $2$

$\%$

Action $3$

$\%$

eTextbook and Media

Using multiple attempts will impact your score.

$50\%$ score reduction after attempt $2$