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i Chrome File Edit View History Bookmarks People Window Help G 100% Di Mon 11:31 PM Mitch Faylor E @ / y] wileyPLUS xC Chegg Study | Guided Solutior x e ì Secure l https://edugen.wileyplus.com/edugen/student/mainfr.uni Custom Writing Ser. o ni VR T e d ill. Q C deco bat The 7% Body-Fat Di. illusions Continuous Old School Runese. Inbound E Companies Needing HubSpot WileyPLUS: HywileyPLUSI Hep I Contact Us I Log Out Apps Lear. >> WileyPLUS Weygandit, Financial & Managerial Accounting, 2 Flnanclal and Managerial Accounting (ACCTG 10 and 11) Hom Read, Study & Practice FULL SCREEN PRINTER VERSIO Do It! Review 24-4 The service dlvislon of Raney Industries reported the fallowing results for 2017. 5567,200 340,320 95,700 609,100 Sales 2Varable costs Controllable fooed costs Average operating assets Management is corsidering the following independent ccurses cf action in 2018 in ©rder to m ax mize the return on investment for this division 1. Reduce average operating assets by $127,100, with no change in controlable margin 2. Increase saes $102,300, wth no change In the controution margin percentage Compute the contro ale margin and the return on investment for 2017 (Round ROI to I decimai pace, e.g. 1.5. Contrellable margin Return on Investment for 2017 docx Compute the control lable margin and the expected reum on investment for eath proposed altemative. (Round hoI to 1 decimal plaoe, eg. 1.5) The contrallable margin The expected return on inwestmen Version 4.24.3.3Explanation / Answer
For 2017:
Alternative 1:
a Sales 5,67,200 Less: Variable cost 3,40,320 b Contribution margin 2,26,880 Less: controllable fixed costs 95,700 c Controllable margin 1,31,180 d Average operating assets 6,09,100 e= c/d *100 Return on investment 21.5%Related Questions
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