For its three investment centers, Monty Company accumulates the following I Sales $1,960,000 $3,920,000 $3,920,000 Controllable...

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For its three investment centers, Monty Company accumulates the following I Sales $1,960,000 $3,920,000 $3,920,000 Controllable margin 1,470,000 2,116,800 3,694,080 Average operating assets 4,900,000 7,890,000 9,800,000 The company expects the following changes for investment centers I, II, and III in the next year: investment center I to increase sales 15%, investment center II to decrease controllable fixed costs $408,000, and investment center III to decrease average operating assets $328,000. Compute the expected return on investment (ROI) for each center. Assume investment center I has a contribution margin percentage of 75%. (Round ROI to 1 decimal place, e.g. 1.5%.) For its three investment centers, Monty Company accumulates the following I Sales $1,960,000 $3,920,000 $3,920,000 Controllable margin 1,470,000 2,116,800 3,694,080 Average operating assets 4,900,000 7,890,000 9,800,000 The company expects the following changes for investment centers I, II, and III in the next year: investment center I to increase sales 15%, investment center II to decrease controllable fixed costs $408,000, and investment center III to decrease average operating assets $328,000. Compute the expected return on investment (ROI) for each center. Assume investment center I has a contribution margin percentage of 75%. (Round ROI to 1 decimal place, e.g. 1.5%.)

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To calculate the expected return on investment ROI for each investment center we need to follow thes... View the full answer