Blue Spruce accumulates the following data for its North Division, an investment center, for the current year. Contribution margin Controllable fixed costs Average operating assets $186,000 $113,550 $700,000 Compute the ROI. (Round answer to two decimal places (e.g., 15.25%).) ROI %

Blue Spruce accumulates the following data for its North Division, an investment center, for the current year. Contribution margin Controllable fixed costs Average operating assets $186,000 $113,550 $700,000 Compute the ROI. (Round answer to two decimal places (e.g., 15.25%).) ROI %

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter11: Performance Evaluation And Decentralization

Section: Chapter Questions

Problem 27E: Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the...

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Question

Blue Spruce accumulates the following data for its North Division, an investment center, for the current year.
Contribution margin
Controllable fixed costs
Average operating assets
$186,000
$113,550
$700,000
Compute the ROI. (Round answer to two decimal places (e.g., 15.25%).)
ROI
%

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Step 1: Evaluation of the investment center

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Step 2: Computation of the controllable margin

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