The Current Controllable Margin for Henry Division Is $93000

Multiple Choice

The current controllable margin for Henry Division is $93000. Its current operating assets are $300000. The division is considering purchasing equipment for $90000 that will increase annual controllable margin by an estimated $15000. If the equipment is purchased what will happen to the return on investment for Henry Division?

A) An increase of 16.1%
B) A decrease of 13.3%
C) A decrease of 3.3%
D) A decrease of 7.2%