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2 12 Ayayai Company expects to produce 1,488,000 units of Product...

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Ayayai Company expects to produce 1,488,000 units of Product XX in 2022. Monthly production is expected to range from 99.200 to 148,800 units. Budgeted variable manufacturing costs per unit are direct materials $4, direct labor $5, and overhead $6. Budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision are $1 Prepare a flexible manufacturing budget for the relevant range value using 24,800 unit increments. (List The South Division of Ayayai Company reported the following data for the current year. Top management is unhappy with the investment center's return on investment (ROI). It asks the manage the South Division to submit plans to improve ROl in the next year. The manager believes it is feasible to consider the following independent courses of action. 1. Increase sales by $300,000 with no change in the contribution margin percentage. 2. Reduce variable costs by $160,000. 3. Reduce average operating assets by 3.00%. (a) Compute the return on investment (ROI) for the current year. (Round ROI to 2 decimal places, eg. 1.57%. Return on Investment % (b) Using the ROI equation, compute the ROI under each of the proposed courses of action. (Round ROI decimal places, e.g. 1.57\%.)

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