For its three investment centers, Gerrard Company accumulates the following data: I II III Sales $2,062,000 $3,914,000 $3,905,000 Controllable margin 848,640 2,161,620 4,103,120 Average operating assets 4,992,000 8,006,000 12,068,000 Compute the return on investment (ROI) for each center. I II III The return on investment % % %
For its three investment centers, Gerrard Company accumulates the following data: I II III Sales $2,062,000 $3,914,000 $3,905,000 Controllable margin 848,640 2,161,620 4,103,120 Average operating assets 4,992,000 8,006,000 12,068,000 Compute the return on investment (ROI) for each center. I II III The 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 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...
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For its three investment centers, Gerrard Company accumulates the following data:
Compute the return on investment (ROI) for each center.
|
I
|
II
|
III
|
||||
|---|---|---|---|---|---|---|
| Sales | $2,062,000 | $3,914,000 | $3,905,000 | |||
| Controllable margin | 848,640 | 2,161,620 | 4,103,120 | |||
| Average operating assets | 4,992,000 | 8,006,000 | 12,068,000 |
Compute the return on investment (ROI) for each center.
|
I
|
II
|
III
|
||||
|---|---|---|---|---|---|---|
| The return on investment |
%
|
%
|
%
|
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