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For its three investment centers, Gerrard Company accumulates the following data: 11 111 Sales $4,000,000 $4,000,000 $2,000,000 1.400,000 5,000,000 2,000,000 Controllable margin Average operating assets

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For its three investment centers, Gerrard Company accumulates the following data: 11 111 Sales $4,000,000 $4,000,000 $2,000,000 1.400,000 5,000,000 2,000,000 Controllable margin Average operating assets 3,600,000 8,000,000 10,000,000 The company expects the following changes for investment centers I, II and Ill in the next year: Investment center to increase sales 15% Investment center Il to decrease controllable fixed costs $400,000, and investment center ili to decrease average operating assets $400,000 Compute the expected return on investment (Ron for each center. Assume investment center has a contribution margin percentage of 70%. (Round Rol to 1 decimal place, cs 1.5%) II 111 The expected return on Investment 95 %

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