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2 years ago

The service division of Raney Industries reported the following results for 2017.

Business

1 answer:

SVEN [57.7K]2 years ago

4 0

Answer:

$131,180; 21.53%

Explanation:

The controllable margin and the return on investment for 2017 are as follows:

Controllable Margin = Sales - Variable cost - Controllable fixed cost

= $567,200 - $340,320 - $95,700

= $131,180

Return on investment = Controllable Margin ÷ Average operating assets

= $131,180 ÷ $609,100

= 0.2153

= 21.53%

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