For its three investment centers, Gerrard Company accumulates the following data: Sales Controllable margin Average operating assets I $2,090,000 1,463,000 4,949,000 || $3,943,000 1,971,500 8,073,000 The expected return on investment ||| $4,079,000 3,671,100 12,147,000 The centers expect the following changes in the next year: (1) increase sales 10%; (II) decrease costs $384,000; (III) decrease average operating assets $545,000. 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%.) % || % ||| %
For its three investment centers, Gerrard Company accumulates the following data: Sales Controllable margin Average operating assets I $2,090,000 1,463,000 4,949,000 || $3,943,000 1,971,500 8,073,000 The expected return on investment ||| $4,079,000 3,671,100 12,147,000 The centers expect the following changes in the next year: (1) increase sales 10%; (II) decrease costs $384,000; (III) decrease average operating assets $545,000. 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%.) % || % ||| %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give solution in image format thanku
![For its three investment centers, Gerrard Company accumulates the following data:
Sales
Controllable margin
Average operating assets
I
||
$2,090,000 $3,943,000
1,463,000
1,971,500
4,949,000
8,073,000
|||
$4,079,000
3,671,100
12,147,000
The centers expect the following changes in the next year: (I) increase sales 10%; (II) decrease costs $384,000; (III) decrease average
operating assets $545,000.
The expected return on
investment
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%.)
%
||
%
do
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa715a7f6-a23e-4172-b417-e3f6f98dc90a%2F1f219e3d-42e0-4b5e-a360-0e198a27cff5%2Fshxarhe_processed.jpeg&w=3840&q=75)
Transcribed Image Text:For its three investment centers, Gerrard Company accumulates the following data:
Sales
Controllable margin
Average operating assets
I
||
$2,090,000 $3,943,000
1,463,000
1,971,500
4,949,000
8,073,000
|||
$4,079,000
3,671,100
12,147,000
The centers expect the following changes in the next year: (I) increase sales 10%; (II) decrease costs $384,000; (III) decrease average
operating assets $545,000.
The expected return on
investment
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%.)
%
||
%
do
%
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