10-10

For its three investment centers, Gerrard Company accumulates the following data: The centers expect the following changes in the next year: (I) increase sales 14%; (II) decrease average operating assets $491,000. 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.)