The service division of Swfity Indsutries reported the following results of 2 0 2 2 . Sales

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Question:

The service division of Swfity Indsutries reported the following results of

2022 .

Sales $

610, 000

Variable Costs $

366, 000

Controllable fixed costs $

61, 000

Average operating assets $

762, 500

Management is considering the

following independent courses of action in

2023

in order to maximize the return on investment for this division.

1 .

Reduce average operating assets by $

152, 500,

with no changing in controllable margin.

2 .

Increases sales

122, 000,

with no change in the contribution margin percentage. Compute the controllable margin and the return on investment for

2022 .

Posted Date: May 14, 2024 09:03 AM

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The service division of Swfity Indsutries reported the following results of 2 0 2 2 . Sales

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Expert Answer:

Given Sales 2022 610000 Variable Costs 2022 366000 Controllable Fixed Costs 2022 61000 Average Ope... View the full answer

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