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Please answer the following question For its three investment centers, Swifty Company accumulates the following data: II III Sales $2,440,000 $4,880,000 $4,880,000 Controllable margin 1,647.000
Please answer the following question
For its three investment centers, Swifty Company accumulates the following data: II III Sales $2,440,000 $4,880,000 $4,880,000 Controllable margin 1,647.000 2,342,400 4,233,600 Average operating assets 6,100,000 8,770,000 12,200,000 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 $440,000. Compute the expected return on investment (ROI) for each center. Assume investment center I has a contribution margin percentage of 68%. (Round ROI to 1 decimal place, e.g. 1.5%.) II The expected return on investment % % %Step by Step Solution
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