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For its three investment centers, Gerrard Company accumulates the following data: I II III Sales $1,960,000 $4,006,000 $4,083,000 Controllable margin 1,372,000 2,003,000 3,674,700 Average operating

For its three investment centers, Gerrard Company accumulates the following data:

I

II

III

Sales $1,960,000 $4,006,000 $4,083,000

Controllable margin 1,372,000 2,003,000 3,674,700

Average operating assets 5,051,000 8,034,000 12,064,000

The centers expect the following changes in the next year: (I) increase sales16%; (II) decrease costs $359,000; (III) decrease average operating assets $493,000.

Compute the expected return on investment (ROI) for each center. Assume center I has a controllable margin percentage of70%.(Round ROI to 1 decimal place, e.g. 1.5%.)

The expected return on investment%

I

II

III

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