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Suppan Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2014, and relevant budget data are as follows.
Actual
Comparison with Budget
Average operating assets for the year for the Home Division were $2,000,700 which was also the budgeted amount.
Compute the expected ROI in 2014 for the Home Division, assuming the following independent changes to actual data
Variable cost of goods sold is decreased by 7%.
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