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For its three investment centers Culver Company accumulates the following data: Sales $2.320.000 $4.640.000 $4.640.000 Controllable margin 1,682.000 2412.800 4,256,000 Average operating assets 5,800,000
For its three investment centers Culver Company accumulates the following data: Sales $2.320.000 $4.640.000 $4.640.000 Controllable margin 1,682.000 2412.800 4,256,000 Average operating assets 5,800,000 8.890,000 11,600.000 The company expects the following changes for investment centers I, II, and l in the next year: investment center I to increase sales 15%, investment center li to decrease controllable fixed costs $432.000, and investment center ll to decrease average operating assets $400.000. Compute the expected return on investment (RO) forch center, Assume investment center I has a contribution margin percentage of 73%, (Round ROI to 1 decimal place, eg. 1.5K) III The expected return on investment
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