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For its three investment centers, Concord Company accumulates the following data: $1,980,000 $4,056,000 $3,965,000 Sales Controllable margin 1,386,000 2,028,000 3,568,500 8,044,000 12,096,000 Average operating assets 4,904,000 The centers expect the following changes in the next year: (I) increase sales 10%; (II) decrease costs $437,000; (III) decrease average operating assets $510,000. Compute the expected return on investment (ROI) for each center. Assume center I has a controllable margin percentage of 70% (Round ROI to 1 decimal place, e.g. 1.5%.) The expected return on investment The actual selling expenses incurred in March 2020 by Waterway Company are as follows. Variable Expenses Fixed Expenses $35,000 $14,178 Sales commissions Sales salaries 7,200 Advertising 10,036 Depreciation Travel 8,305 Insurance 1,300 Delivery 3,382 (a) Prepare a flexible budget performance report for March, assuming that March sales were $166,100. Variable costs and their percentage relationship to sales are sales commissions 8%, advertising 6%, traveling 5%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,000, Depreciation on delivery equipment $7,200, and insurance on delivery equipment $1,300. (List variable costs before fixed costs. WATERWAY COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2020 Difference Favorable Unfavorable Neither Favorable Actual Budget nor Unfavorable tA A tA 4A +A A- (b) Prepare a flexible budget performance report, assuming that March sales were $174,100. (List variable costs before fixed costs.) WATERWAY COMPANY Selling Expense Flexible Budget Report For the Month Ended March 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual $ $ $