Homework Answers
1a) Controllable margin = 112860
Return on investment = 112860/594000 = 19%
1b) Calculate following
| Alternative 1 | Alternative 2 | |
| The controllable margin | 112860 | 163944 |
| The expected return on investment | 112860/418000 = 27% | 163944/594000 = 27.6% |
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investment (ROI). It asks the manager of the South Division to
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it is feasible to consider the following independent courses of
action.
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