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Brief Exercise 10-10 For its three investment centers, Gerrard Company accumulates the following data: Sales Controllable margin Average operating assets 5,013,000 7,953,000 12,032,000 $2,100,000 $3,986,000
Brief Exercise 10-10 For its three investment centers, Gerrard Company accumulates the following data: Sales Controllable margin Average operating assets 5,013,000 7,953,000 12,032,000 $2,100,000 $3,986,000 $3,918,000 952,470 1,988,250 4,211,200 The centers expect the following changes in the next year: (1) increase sales 10%; (II) decrease costs $411,000; (III) decrease average operating assets $518,000 Compute the expected return on investment (ROI) for each center. Assume center I has a controllable margin percentage of 80%. (Round ROI to 1 decimal place, e.g. 1.5.) The expected return on investment
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