The service division of Raney Industries reported the following results for 2013

Question

The service division of Raney Industries reported the following results for 2013. Management is considering the following independent courses of action in 2014 in order to maximize the return on investment for this division. Reduce average operating assets by $128,482, with no change in controllable margin. Increase sales $110,000, with no change in the contribution margin percentage. Compute the controllable margin and the return on investment for 2013. Compute the controllable margin and the expected return on investment for each proposed alternative.

Explanation / Answer

Workings

Sales 544000 Variable Cost 320960 contribution margin 223040 41% Contollable fixed cost 70630

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.