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Brief Exercise 24-10 Your answer is partially correct. Try again. For its three investment centers, Gerrard Company accumulates the following data: Sales Controllable margin Average
Brief Exercise 24-10 Your answer is partially correct. Try again. For its three investment centers, Gerrard Company accumulates the following data: Sales Controllable margin Average operating assets $2,070,000 1,318,200 5,070,000 II $4,032,000 2,082,600 8,010,000 III $4,042,000 3,781,070 12,197,000 The centers expect the following changes in the next year: (I) increase sales 16%; (II) decrease costs $441,000; (III) decrease average operating assets $492,000. 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 30.2 31.5 32.3% %
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