Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For its three investment centers, Gerrard Company accumulates the following data: Sales Controllable margin Average operating assets $1,980,000 1,386,000 5,084,000 11 $3.916,000 1.958.000 7.964,000 $4,041,000

image text in transcribed
For its three investment centers, Gerrard Company accumulates the following data: Sales Controllable margin Average operating assets $1,980,000 1,386,000 5,084,000 11 $3.916,000 1.958.000 7.964,000 $4,041,000 3.636,900 12,099,000 The centers expect the following changes in the next year: (1) increase sales 20%; (II) decrease costs $390,000; (!!!) decrease average operating assets $496,000. Compute the expected return on investment (ROI) for each center. Assume center has a controllable margin percentage of 70% (Round ROI to 1 decimal place, eg 1.5%)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

EBay Sales Tracker Quick And Easy Bookkeeping System

Authors: Queen Thrift

1st Edition

B08KJ5FJND, 979-8692592774

More Books

Students also viewed these Accounting questions

Question

forecasting report

Answered: 1 week ago