Show Attempt History Current Attempt in Progress Your answer is partially correct The South Division of Blue Spruce Company reported the following data for the current year Sales $2.950,000 Variable costs 1.917.500 605.000 Controllable fixed costs Average operating assets 5.000.000 Top management is unhappy with the investment center's return on investment (ROIt asks the manager of the South Division to submit plans to improve ROL 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 Reduce variable costs by $150,000 2 3. Reduce average operating assets by 4.00% Top management is unhappy with the investment center's return on investment Rites the age of the South Division to submit plans to improve ROI in the next year. The maruger believes it is feasible to consider the following independent courses of action 1. 2. Increase sales by $300.000 with no change in the contribution murin percentat Reduce variable costs by $150.000 Reduce average operating assetsby 400% 3. (al Compute the return on investment for the current year (Round ROI to 2 decimal places, s 1.57%) Return on investment b) Using the ROI equation, compute the Rol under each of the proposed courses of action (Round ROI o 2 decimal places, 1.57%) Return on investment Action 1 Action 2 012 7.70 Action 3