Question
Question 7 For its three investment centers, Gerrard Company accumulates the following data: I II III Sales $2,090,000 $3,943,000 $4,079,000 Controllable margin 841,330 1,856,790 4,251,450
Question 7 For its three investment centers, Gerrard Company accumulates the following data: I II III Sales $2,090,000 $3,943,000 $4,079,000 Controllable margin 841,330 1,856,790 4,251,450 Average operating assets 4,949,000 8,073,000 12,147,000 The centers expect the following changes in the next year: (I) increase sales 10%; (II) decrease costs $384,000; (III) decrease average operating assets $545,000. Compute the expected return on investment (ROI) for each center. Assume center I has a controllable margin percentage of 78%. (Round ROI to 1 decimal place, e.g. 1.5.) I II III The expected return on investment % % %
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