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For its three investment centers, Ayayai Company accumulates the following data: Sales Controllable margin Average operating assets 11 $2,480,000 $4,960,000 1,736,000 6,200,000 The expected return

For its three investment centers, Ayayai Company accumulates the following data: Sales Controllable margin Average operating assets 11 $2,480,000 $4,960,000 1,736,000 6,200,000 The expected return on investment 2,480,000 10,000,000 ||| The company expects the following changes for investment centers I, II, and III in the next year: investment center I to increase sales 15%, investment center II to decrease controllable fixed costs $520,000, and investment center III to decrease average operating assets $504,000. 28 $4,960,000 4,520,480 Compute the expected return on investment (ROI) for each center. Assume investment center I has a contribution margin percentage of 70%. (Round ROI to 1 decimal place, e.g. 1.5%) % 12,400,000 11 25 % ||| 36 %
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what is the expected return on investment for I, II, III percent? image text in transcribed
For its threet investment centers. Ayayai Company accumulates the following data: The company expects the following changes for investment centers 1,11 , and III in the nuxt year investment center I to increase sales 15%, investment center II to decrease controllable frxed costs $520,000, and investment center ili to decrease average operating serete esna im Compute the expected retum on investment (RO) for each center. Assume investment center i has a contribution margin percentage of 70\%, (Round Rol to 1 decimal place, ese 1.5X) For its three investment centers, Ayayai Company accumulates the following data: The company expects the foliowing changes for investment centers L,II, and III in the next year: investment center I to increase sales 15%, investment center il to decrease controllable fixed costs $520,000, and investment center ill to decrease averoge operating assetis 504000 Compute the expected retum on investment (ROI) for cach center. Assume investment center I has a contribution margln percentage of 70K (Round Rol to 1 decimal plack, es 1.5%.)

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