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For its three investment centers, Sheffield Company accumulates the following data: The company expects the following changes for investment centers I, II, and III in
For its three investment centers, Sheffield Company accumulates the following data: 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 $480,000, and investment center III to decrease average operating assets $424,000. 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%.)
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