For its three investment centers, Gerrard Company accumulates the following data:     I   II   III 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 Compute the return on investment (ROI) for each center.     I   II   III The return on investment   enter percentages  %   enter percentages  %   enter percentages  %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

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

   
I
 
II
 
III
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


Compute the return on investment (ROI) for each center.

   
I
 
II
 
III
The return on investment
 
enter percentages  %
 
enter percentages  %
 
enter percentages  %
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Divisional performance management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education