For its three investment centers, Gerrard Company accumulates the following data: ...
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Accounting
For its three investment centers, Gerrard Company accumulates the following data:
I
II
III
Sales
$1,990,000
$4,089,000
$3,961,000
Controllable margin
1,393,000
2,044,500
3,564,900
Average operating assets
5,064,000
7,982,000
12,176,000
The centers expect the following changes in the next year: (I) increase sales 12%; (II) decrease costs $433,000; (III) decrease average operating assets $518,000. 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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