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Brief Exercise 11-10 For its three investment centres, Stahl Company accumulates the following data: Centre I Centre II Centre III $1,974,000 $3,075,100 $3,968,400 885,240 2,061,800
Brief Exercise 11-10 For its three investment centres, Stahl Company accumulates the following data: Centre I Centre II Centre III $1,974,000 $3,075,100 $3,968,400 885,240 2,061,800 3,117,050 Average operating assets 4,918,000 7,930,000 10,055,000 Sales Controllable margin The centres expect the following changes in the next year: Centre 1 a 16% increase in sales; Centre Ia $16 300 decrease in costs and Centrem a decrease average operating assets. Calculate the expected return on investment for each Centre. Assume Centre I has a contribution margin percentage of 75%. (Round answers to 1 decimal place, e.g. 15.2%.) Centre I Centre II Centre
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