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Brief Exercise 10-10 For its three investment centers, Gerrard Company accumulates the following data: Sales Controllable margin Average operating assets5,044,000 $1,990,000 $3,962,000 $3,915,000 807,040 2,546,240
Brief Exercise 10-10 For its three investment centers, Gerrard Company accumulates the following data: Sales Controllable margin Average operating assets5,044,000 $1,990,000 $3,962,000 $3,915,000 807,040 2,546,240 3,762,780 12,138,000 7,957,000 The centers expect the following changes in the next year: (I) increase sales 20%; (II) decrease costs $427,000; (III) decrease average operating assets $516,000. 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.9. 1.5 The expected return on investment LINK TO TEXT
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