Management is considering the following independent courses of action in 2019 in order to maximize the return on investment for this division. (Based on original financial information above). Compute the controllable margin and the expected ROI for each proposed alternative. a) Reduce average operating assets by $125,000 with no change in controllable margin. b) Increase sales by $100,000 with no change in the contribution margin percentage (contribution margin ratio).

Mesa company produces wooden rocking chairs. the company has two production departments, cutting and assembly. the wood is cut and sanded in cutting and then transferred to assembly to be assembled and painted. from assembly, the chairs are transferred to finished goods inventory and then are sold.mesa has compiled the following information for the month of february: cutting department assemblydepartmentdirect materials $ 73,000 $ 13,000direct labor 73,000 108,000applied manufacturing overhead 159,000 171,000cost of goods completed and transferred out 233,000 255,000required: 1, 2, 3, & 4. prepare journal entries for the transactions in the cutting and assembly departments of mesa company. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)