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For its three investment centers, Martinez Company accumulates the following data: I II III Sales $2,000,000 $3,750,000 $3,730,000 Controllable margin 1,400,000 1,708,250 3,208,810 Average operating

For its three investment centers, Martinez Company accumulates the following data:

I

II

III

Sales $2,000,000 $3,750,000 $3,730,000
Controllable margin 1,400,000 1,708,250 3,208,810
Average operating assets 5,000,000 7,630,000 9,860,000

The centers expect the following changes in the next year: (I) increase sales 10%; (II) decrease costs $390,000; (III) decrease average operating assets $450,000. Compute the expected return on investment (ROI) for each center. Assume center I has a controllable margin percentage of 70%.

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