Question
For its three investment centers Blossom company accumulates the following data: Given chart: Sales $2,100,000 $3,986,000 $3,918,000 Controllable margin 1,472,199 1,990,806 3,523,284 Average operating assets
For its three investment centers Blossom company accumulates the following data:
Given chart:
Sales $2,100,000 $3,986,000 $3,918,000
Controllable margin 1,472,199 1,990,806 3,523,284
Average operating assets 5,013,000 7,953,000 12,032,000
The company expects the following changes for investment centers 1,2,and 3 in the next year: investment center 1 increase sales 10%. Investment Center 2 decrease controllable fixed cost $411,000 and investment center 3 decrease average operating assets $518,000
Computer the expected return on investment for each center. Assume investment center 1 has a contribution margin percentage of 70%
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