Question: Current Attempt in Progress * Your answer is incorrect. For its three investment centers, Pronghorn Company accumulates the following data: III Sales $2,080,000 $4,160,000
Current Attempt in Progress * Your answer is incorrect. For its three investment centers, Pronghorn Company accumulates the following data: III Sales $2,080,000 $4,160,000 $4,160,000 Controllable margin 1,456,000 2,080,000 3,787,840 Average operating assets 5,200,000 7,975,000 10,400,000 The company expects the following changes for investment centers I, II, and III in the next year: investment center I to increase sales 15%, investment center II to decrease controllable fixed costs $472,000, and investment center III to decrease average operating assets $432,000. Compute the expected return on investment (ROI) for each center. Assume investment center I has a contribution margin percentage of 70%. (Round ROI to 1 decimal place, e.g. 1.5%) The expected return on investment 30.80 % 35.48 % III 35.50 %
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