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For its three investment centers, Martinez Company accumulates the following data: I II III Sales $2,000,000 $3,750,000 $3,730,000 Controllable margin 1,400,000 1,708,250 3,208,810 Average operating assets 5,000,000 7,630,000 9,860,000 The centers expect...

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Accounting

For its three investment centers, Martinez Company accumulatesthe following data:

I

II

III

Sales$2,000,000$3,750,000$3,730,000
Controllable margin1,400,0001,708,2503,208,810
Average operating assets5,000,0007,630,0009,860,000


The centers expect the following changes in the next year: (I)increase sales 10%; (II) decrease costs $390,000; (III) decreaseaverage operating assets $450,000.

Compute the expected return on investment (ROI) for each center.Assume center I has a controllable margin percentage of 70%.

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