For its three investment centers, Martinez Company accumulates the following data: I II III Sales $2,000,000...

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

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

Expert Solution

ekkarill92 answered 11 months ago

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