The Atlantic Division of Stark Productions Company Reported the Following

question 94

Essay

The Atlantic Division of Stark Productions Company reported the following results for 2016:
Management is considering the following independent alternative courses of action in 2017 in order to maximize the return on investment for the division.
1. Reduce controllable fixed costs by 10% with no change in sales or variable costs.
2. Reduce average operating assets by 10% with no change in controllable margin.
3. Increase sales $500,000 with no change in the contribution margin percentage.
Instructions
(a) Compute the return on investment for 2016.
(b) Compute the expected return on investment for each of the alternative courses of action.

---

Definitions:

Test Content

encompasses the material, questions, and tasks included in a test, designed to measure specific knowledge, skills, or abilities.

Test Worthiness

A term referring to the quality and appropriateness of a test, often evaluated through criteria such as reliability, validity, and practicality.

Scoring

The process of assigning values or points to answers or performances in assessments to evaluate competence or achievement.

HIPAA

The Health Insurance Portability and Accountability Act, a U.S. law designed to protect patient medical information.