View Policies Current Attempt in Progress rt For its three ivestment centers, Gerrard Company accumulates the following data: II $1,900,000 $4075,000 $4,069,00 Sales Controllable margin 1,330,000 2,037,500 3,662,10 Average operating assets 5,068,000 7,993,000 12,028,00 The centers expect the following changes in the next year: (I) increase sales 14%; (II) decrease costs $376,000; (III) decrease average operating assets $491,000. 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%.) The expected return on investment

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 14.5.3P
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View Policies
Current Attempt in Progress
rt
For its three ivestment centers, Gerrard Company
accumulates the following data:
II
$1,900,000 $4075,000 $4,069,00
Sales
Controllable margin
1,330,000 2,037,500 3,662,10
Average operating assets 5,068,000 7,993,000 12,028,00
The centers expect the following changes in the next year: (I)
increase sales 14%; (II) decrease costs $376,000; (III)
decrease average operating assets $491,000.
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%.)
The expected return on investment
Transcribed Image Text:View Policies Current Attempt in Progress rt For its three ivestment centers, Gerrard Company accumulates the following data: II $1,900,000 $4075,000 $4,069,00 Sales Controllable margin 1,330,000 2,037,500 3,662,10 Average operating assets 5,068,000 7,993,000 12,028,00 The centers expect the following changes in the next year: (I) increase sales 14%; (II) decrease costs $376,000; (III) decrease average operating assets $491,000. 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%.) The expected return on investment
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