The South Division of Culver Company reported the following data for the current year: Top management is unhappy with the investment center's return on Investment (ROI), It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager belleves it is feasible to consider the following indeperifent courves of action. 1. Increase sales by $300,000 with no change in the contribution margin percentage- 3. Reduce averape operatingastets by 4,000 . Return on Irivestment (b) Using the ROI equation, compute the ROI under each of the proposed courses of action, (Round Roi to 2 dedinaf phace. ey 157x )
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