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For its three investment centers, Pronghorn Company accumulates the following data: 1 MI Sales Controllable margin Average operating assets $2,000,000 1.400,000 5.000.000 $4,080,000 1,896,920 8.060.000
For its three investment centers, Pronghorn Company accumulates the following data: 1 MI Sales Controllable margin Average operating assets $2,000,000 1.400,000 5.000.000 $4,080,000 1,896,920 8.060.000 $4.010,000 3,978,360 10.740.000 The centers expect the following changes in the next year: (1) increase sales 10%: (11) decrease costs $376,000: (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, eg. 1.5.) The expected return on investment 1% 0 % 0 %
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