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For its three investment centers, Gerrard Company accumulates the following data: Sales Controllable margin Average operating assets I $1,990,000 1,393,000 5,044,000 II $3,962,000 1,981,000 7,957,000
For its three investment centers, Gerrard Company accumulates the following data: Sales Controllable margin Average operating assets I $1,990,000 1,393,000 5,044,000 II $3,962,000 1,981,000 7,957,000 III $3,915,000 3,523,500 12,138,000 The centers expect the following changes in the next year: (1) increase sales 20%; (II) decrease costs $427,000; (III) decrease average operating assets $516,000. 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%.) The expected return on investment % % %
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