Question: Data for the investment centers for Gerrard Company are given in BE24-9. The centers expect the following changes in the next year: In Exercise (I)

Data for the investment centers for Gerrard Company are given in BE24-9. The centers expect the following changes in the next year:
In Exercise

(I) Increase sales 15%,
(II) Decrease costs $400,000,
(III) Decrease average operating assets $500,000.
Compute the expected return on investment (ROI) for each center. Assume center I has a controllable margin percentage of70%.

$2,000000 $4,00$4,00,000 Sales Controllable margin Average operating assets $2,000,000 1,400,000 5,000,000 4,000,000 4,000,000 2,000,000 8,000,00O 3,600,000 10,000,000

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