The green division of Oriole Company reported the following data for the current year: Sales $2,970,000...

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The green division of Oriole Company reported the following data for the current year: Sales $2,970,000 Variable costs 1,960,200 Controllable fixed costs 594,000 Average operating assets 4,950,000 Top management is unhappy with the investment centre's return on investment. It asks the manager of the green division to submit plans to improve the ROI in the next year. The manager believes it is reasonable to consider each of the following independent courses of action. 1. Increase sales by $495,000 with no change in the contribution margin percentage. 2. Reduce variable costs by $148,500. 3. Reduce average operating assets 4%. (a) Calculate the return on investment for the current year. (Round ROI to 1 decimal place, e.g. 1.5%.) Return on Investment % (b) Using the ROI formula, calculate the ROI under each of the proposed courses of action. (Round ROI to 1 decimal place, e.g. 1.5%.) Return on investment Action 1 Action 2 Action 3 % % % The green division of Oriole Company reported the following data for the current year: Sales $2,970,000 Variable costs 1,960,200 Controllable fixed costs 594,000 Average operating assets 4,950,000 Top management is unhappy with the investment centre's return on investment. It asks the manager of the green division to submit plans to improve the ROI in the next year. The manager believes it is reasonable to consider each of the following independent courses of action. 1. Increase sales by $495,000 with no change in the contribution margin percentage. 2. Reduce variable costs by $148,500. 3. Reduce average operating assets 4%. (a) Calculate the return on investment for the current year. (Round ROI to 1 decimal place, e.g. 1.5%.) Return on Investment % (b) Using the ROI formula, calculate the ROI under each of the proposed courses of action. (Round ROI to 1 decimal place, e.g. 1.5%.) Return on investment Action 1 Action 2 Action 3 % % %

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a Net income contribution fixed costs Sales variable cost Fixed cos... View the full answer