Rob Haughton Is the North Division Manager and His Performance

Rob Haughton is the North Division manager and his performance is evaluated by executive management based on Division ROI. The current controllable margin for North Division is $46,000. Its current operating assets total $210,000. The division is considering purchasing equipment for $40,000 that will increase sales 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.