For its three investment centers, Gerrard Company accumulates the following data: II Sales $2.000.000 $4.000,000 $4,000,000...
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For its three investment centers, Gerrard Company accumulates the following data: II Sales $2.000.000 $4.000,000 $4,000,000 Controllable margin 1.400,000 2,000,000 3,600,000 Average operating assets 5,000,000 8,000,000 10,000,000 The company expects the following changes for investment centerst, I, and I in the next year: investment center I to increase sales 15%, Investment center Il to decrease controllable fixed costs $400,000, and investment center Il to decrease average operating assets $400,000. Compute the expected return on investment (ROI) for each center. Assume investment center has a contribution margin percentage of 70%. (Round ROI to 1 decimal place, eg. 1.5%) %3D III The expected return on investment For its three investment centers, Gerrard Company accumulates the following data: II Sales $2.000.000 $4.000,000 $4,000,000 Controllable margin 1.400,000 2,000,000 3,600,000 Average operating assets 5,000,000 8,000,000 10,000,000 The company expects the following changes for investment centerst, I, and I in the next year: investment center I to increase sales 15%, Investment center Il to decrease controllable fixed costs $400,000, and investment center Il to decrease average operating assets $400,000. Compute the expected return on investment (ROI) for each center. Assume investment center has a contribution margin percentage of 70%. (Round ROI to 1 decimal place, eg. 1.5%) %3D III The expected return on investment
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Answer Answer BE259 Calculation of Return on Investment Investment centre 114000005... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Posted Date:
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