For its three investment centers, Gerrard Company accumulat

The centers expect the following changes in the next year: (I) increase sales 16%; (II) decrease costs $410,000; (III) decrease average operating assets $464,000.

Compute the expected return on investment (ROI) for each center. Assume center I has a controllable margin percentage of 72%.

The expected return on investment I: II: III:

Please include formulas.

Sales $2,080,000 $3,956,000 $4,033,000 Controllable margin 893,880 2,233,000 4,000,260 Average operating assets 4,966,000 7,975,000 12,122,000