For its three investment centers, the Gerrard Company accumulates the following data: 

I II III Sales $1,980,000 $3,997,000 $3,946,000

 Controllable margin 1,386,000 1,998,500 3,551,400 

Average operating assets 4,977,000 7,962,000 12,190,000 

Centers expect next year sales: 0% change (II) cost reduction of $352,000; (III) decrease average operating assets $495,000. 

Calculate the expected return on investment (ROI) for each center. Assume that site I has a controllable margin percentage of 70%. (Round the ROI to 1 decimal place, for example, 1.5%).

Answer rating: 100% (QA)

Sales Controllable margin Average operating assets 2... View the full answer