Question
For its three investment centers, Martinez Company accumulates the following data: I II III Sales 2000000 3750000 3730000 Controllable Margin 1400000 1708250 3208810 Average Operating
For its three investment centers, Martinez Company accumulates the following data: I II III
Sales 2000000 3750000 3730000
Controllable Margin 1400000 1708250 3208810
Average Operating Assets 5000000 7630000 9860000
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%. (Round ROI to 1 decimal place, e.g. 1.5.) I II III
The expected Return on Investment: % % %
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