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Brief Exercise 10-10 For its three investment centers, Gerrard Company accumulates the following data: I II III Sales Controllable margin Average operating assets $2,010,000 1,407,000
Brief Exercise 10-10 For its three investment centers, Gerrard Company accumulates the following data: I II III Sales Controllable margin Average operating assets $2,010,000 1,407,000 4,929,000 $3,936,000 1,968,000 8,018,000 $4,039,000 3,635,100 12,075,000 The centers expect the following changes in the next year: (I) increase sales 14%; (II) decrease costs $373,000; (III) decrease average operating assets $452,000. 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%.) I II III The expected return on investment % % %
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