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For its three investment centers, Indigo Company accumulates the following data: Sales $2,400,000 $4,800,000 $4,800,000 Controllable margin 1,560,000 2,208,000 4,071,200 Average operating assets 6,000,000
For its three investment centers, Indigo Company accumulates the following data: Sales $2,400,000 $4,800,000 $4,800,000 Controllable margin 1,560,000 2,208,000 4,071,200 Average operating assets 6,000,000 8,025,000 12,000,000 The company expects the following changes for investment centers I, II, and III in the next year: investment center I to increase sales 15%, investment center II to decrease controllable fixed costs $360,000, and investment center III to decrease average operating assets $368,000. Compute the expected return on investment (ROI) for each center. Assume investment center I has a contribution margin percentage of 65%. (Round ROI to 1 decimal place, e.g. 1.5%.) The expected return on investment % % do
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