For its three investment centers, Indigo Company accumulates the following data:SalesControllable marginAverage operating assets1$2,400,000$4,800,000 $4,800,0001,560,0002.208,0006,000,000 9,600,000The return on investment i11Compute the return on investment (ROI) for each center.%1114,080,00012,000,000HE%

Return on investment can be calculated as dividing controllable margin by average operating assets.…

Sales sent centers, Indigo Company accumulates the following data: Controllable margin Average operating assets I $2,400,000 $4,800,000 $4,800,000 1.560.000 2.208.000 4,080,000 6,000,000 9,600,000 12,000,000 The return on investment 11 Compute the return on investment (ROI) for each center. 111 HII

Sales sent centers, Indigo Company accumulates the following data: Controllable margin Average operating assets I $2,400,000 $4,800,000 $4,800,000 1.560.000 2.208.000 4,080,000 6,000,000 9,600,000 12,000,000 The return on investment 11 Compute the return on investment (ROI) for each center. 111 HII

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

For its three investment centers, Indigo Company accumulates the following data:
Sales
Controllable margin
Average operating assets
1
$2,400,000
$4,800,000 $4,800,000
1,560,000
2.208,000
6,000,000 9,600,000
The return on investment i
11
Compute the return on investment (ROI) for each center.
%
111
4,080,000
12,000,000
HE
%

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