Question: Brief Exercise 10-10 x] Your answer is incorrect. Try again. For its three investment centers, Gerrard Company accumulates the following data: 1 II ITI Sales
Brief Exercise 10-10 x] Your answer is incorrect. Try again. For its three investment centers, Gerrard Company accumulates the following data: 1 II ITI Sales $2,080,000 $4,050,000 $3,989,000 Controllable margin 1,456,000 2,025,000 3,590,100 Average operating assets 5,021,000 7,930,000 12,032,000 The centers expect the following changes in the next year: (1) increase sales 20%; (II) decrease costs $426,000; (111) decrease average operating assets $508,000, Compute the expected return on Investment (ROI) for each center. Assume center 1 has a controllable margin percentage of 70%. (Round ROI to 1 decimal place, e.g. 1.5%.) I II II The expected return on Investment 30.8 28.1 35.5 96
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