Question
For its three investment centers, Gerrard Company accumulates the following data: I II III Sales $2,070,000 $4,062,000 $4,044,000 Controllable margin 712,320 2,054,520 4,461,090 Average operating
For its three investment centers, Gerrard Company accumulates the following data: I II III Sales $2,070,000 $4,062,000 $4,044,000 Controllable margin 712,320 2,054,520 4,461,090 Average operating assets 5,088,000 7,902,000 12,057,000 The centers expect the following changes in the next year: (I) increase sales 18%; (II) decrease costs $430,000; (III) decrease average operating assets $450,000. 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 % % %
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