- For Its Three Investment Centers Gerrard Company Accumulates The Following Data 11 Sales 2 100 000 3 986 000 3 918 1 (33.12 KiB) Viewed 46 times
For its three investment centers, Gerrard
Company accumulates the following data: 11 Sales $2,100,000 $3,986,000 $3,918,000 Controllable margin 1,470,000 1,993,000 3,526,200 Average operating assets 5,013,000 7,953,000 12,032,000 The centers expect the following changes in the next year: (I) increase sales 10%; (11) decrease costs $411,000 (III) decrease average operating assets $518,000. Compute the expected return on investment (ROI) for each center. Assume center I has a controllable margin percentage of 70%, (Round ROI to 1 decimal place, e.g. 1.5%.) 11 III % 26.74 % 36.57 The expected return on investment