Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For its three investment centers, Gerrard Company accumulates the following data: I II III Sales Controllable margin Average operating assets $2,090,000 1,463,000 4,949,000 $3,943,000 1,971,500

image text in transcribed

For its three investment centers, Gerrard Company accumulates the following data: I II III Sales Controllable margin Average operating assets $2,090,000 1,463,000 4,949,000 $3,943,000 1,971,500 8,073,000 $4,079,000 3,671,100 12,147,000 The centers expect the following changes in the next year: (1) increase sales 10%; (II) decrease costs $384,000; (III) decrease average operating assets $545,000. 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%.) | III III The expected return on investment % % %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions