For its three investment centers, Gerrard Company accumulates the following data: I II III Sales...

80.2K

Verified Solution

Question

Accounting

For its three investment centers, Gerrard Company accumulates the following data: I II III Sales $2,010,000 $3,936,000 $4,039,000 Controllable margin 936,510 2,004,500 4,830,000 Average operating assets 4,929,000 8,018,000 12,075,000 The centers expect the following changes in the next year: (I) increase sales 14%; (II) decrease controllable fixed costs $373,000; (III) decrease average operating assets $452,000. Compute the expected return on investment (ROI) for each center. Assume center I has a contribution margin percentage of 74%. (Round ROI to 1 decimal place, e.g. 1.5.) I II III The expected return on investment % % %

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students