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The area manager of the Red, White, and Brew Restaurants is considering two possible expansion alternatives. The required investments, expected controllable margins, and the ROIs of each are as follows:

Project	Investment	Controllable Margin	ROI
Phoenix	$120,000	$30,000	25%
Chicago	$540,000	$50,000	9.25%

The Red, White, and Brew segment has currently $2,000,000 in invested capital and a controllable margin of $250,000. Which one of following projects will increase the Red, White, and Brew division's ROI?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9973125

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