Brief Exercise 10-10 For its three investment centers, Gerrard Company accumulates the following data: Sales...

50.1K

Verified Solution

Question

Accounting

image

Brief Exercise 10-10 For its three investment centers, Gerrard Company accumulates the following data: Sales Controllable margin Average operating assets 5,013,000 7,953,000 12,032,000 $2,100,000 $3,986,000 $3,918,000 952,470 1,988,250 4,211,200 The centers expect the following changes in the next year: (1) increase sales 10%; (II) 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 80%. (Round ROI to 1 decimal place, e.g. 1.5.) The expected return on investment

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students