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For its three investment centers, Marigold Company accumulates the following data: Sales Controllable margin Average operating assets $1,880,000 $3,760,000 $3,760,000 1,316,000 The expected return on

For its three investment centers, Marigold Company accumulates the following data: Sales Controllable margin Average operating assets $1,880,000 $3,760,000 $3,760,000 1,316,000 The expected return on investment 4,700,000 1,880,000 7,325,000 3,423,040 9,400,000 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 $464,000, and investment center III to decrease average operating assets $392,000. Compute the expected return on investment (ROI) for each center. Assume investment center I has a contribution margin percentage of 70%. (Round ROI to 1 decimal place, e.g. 1.5%.) % 11 % III %
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For its three investment centers, Marigold Company accumulates the following data: The company expects the following changes for investment centers 1,11 , and III in the next year: investment center I to increase sales 15%, investment center II to decrease controllable fixed costs $464,000, and investment center III to decrease average operating assets $392,000. Compute the expected return on investment (ROI) for each center. Assume investment center I has a contribution margin percentage of 70%. (Round ROI to 1 decimal place, eg. 1.5\%)

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