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Brief Exercise 10-10 For its three investment centers, Gerrard Company accumulates the following data: II Sales Controllable margin Average operating assets $1,920,000 1,344,000 4,903,000 $4,013,000
Brief Exercise 10-10 For its three investment centers, Gerrard Company accumulates the following data: II Sales Controllable margin Average operating assets $1,920,000 1,344,000 4,903,000 $4,013,000 2,006,500 8,021,000 III $4,033,000 3,629,700 12,010,000 The centers expect the following changes in the next year: (I) increase sales 14%; (II) decrease costs $404,000; (III) decrease average operating assets $534,000. 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%.) II III The expected return on investment % % Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT
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