Brief Exercise 22-9 For its three investment centers, Gerrard Company accumulate

Q: Brief Exercise 22-9 For its three investment centers, Gerrard Company accumulate

ROI controllable margin/net operating assets 1 2 3 Controllable Margin 848640 2161620 4103120 Average operating assets 4992000 8006000 12068000 ROI 17% 27% 34% ROI controllable margin/net operating assets 1 2 3 Controllable Margin 848640 2161620 4103120 Average operating assets 4992000 8006000 12068000 ROI 17% 27% 34%

ID: 2594855 • Letter: B

Question

Brief Exercise 22-9 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 %
Brief Exercise 22-9 For its three investment centers, Gerrard Company accumulates the following data: Sales Controllable margin Average operating assets $2,062,000 $3,914,000 $3,905,000 848,640 2,161,620 4,103,120 4,992,000 8,06,000 12,068,000 Compute the return on investment (ROI) for each center. I1 The return on investment Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

ROI

controllable margin/net operating assets

Controllable Margin

848640

2161620

4103120

Average operating assets

4992000

8006000

12068000

ROI

17%

27%

34%

ROI