Cruise Division of Harold's Company's operating results include: controllable margin, $200,000; sales $2,200,000; and operating assets, $800,000. The Cruise Division's current ROI is 25%, the minimum rate or return the company is seeking. Management is considering a project with sales of $100,000, variable expenses of $60,000, fixed costs of $40,000; and an asset investment of $150,000. Should management accept this new project?
a. No, since ROI will be lowered.
b. Yes, since ROI will increase.
c. Yes, since additional sales always mean more customers.
d. No, since a loss will be incurred.