Betsy Union Is the Pika Division Manager and Her Performance

Betsy Union is the Pika Division manager and her performance is evaluated by executive management based on Division ROI. The current controllable margin for Pika Division is $46,000. Its current operating assets total $210,000. The division is considering purchasing equipment for $40,000 that will increase contribution margin by an estimated $10,000, with annual depreciation of $10,000. If the equipment is purchased, what will happen to the return on investment for the division?

A) An increase of 0.5%
B) A decrease of 0.5%
C) A decrease of 3.5%
D) It will remain unchanged.