The service division of Raney Industries reported the following results for 2022.

Sales.................................................    $500,000

Variable costs....................................    300,000

Controllable fixed costs.....................    75,000

Average operating assets................    625,000

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 $125,000, with no change in controllable margin.

2. Increase sales $100,000, with no change in the contribution margin percentage.

a. Compute the controllable margin and the return on investment for 2022.

b. Compute the controllable margin and the expected return on investment for 2023 for each proposed alternative.