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For its three investment centers, Gerrard Company accumulates the following data: Sales Controllable margin Average operating assets $1,960,000 $4,027,000 $4,035,000 1,372,000 2,013,500 3,631,500 4,902,000 8,097,000
For its three investment centers, Gerrard Company accumulates the following data: Sales Controllable margin Average operating assets $1,960,000 $4,027,000 $4,035,000 1,372,000 2,013,500 3,631,500 4,902,000 8,097,000 12,146,000 The centers expect the following changes in the next year: (1) increase sales 20%; (II) decrease costs $439,000; (III) decrease average operating assets $460,000. 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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