For its three investment centers, Ayayal Company accumulates the following data: Sales Controllable margin Average operating assets 11 111 $4,960.000 $4,960,000 2.480,000 4,464,000 6,200,000 9,920.000 12.400.000 The return on investment $2.480.000 1,736,000 Compute the return on investment (ROI) for each center 25 % 21

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 4BE: Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested...
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For its three investment centers, Ayayai Company accumulates the following data:
Sales
Controllable margin
Average operating assets
$2,480,000
1,736,000
6,200,000
The return on
investment
11
$4,960,000
2.480,000
9,920.000
Compute the return on investment (ROI) for each center.
25
%
111
$4,960,000
4,464,000
12.400.000
11
21.43
m
24
96
Transcribed Image Text:For its three investment centers, Ayayai Company accumulates the following data: Sales Controllable margin Average operating assets $2,480,000 1,736,000 6,200,000 The return on investment 11 $4,960,000 2.480,000 9,920.000 Compute the return on investment (ROI) for each center. 25 % 111 $4,960,000 4,464,000 12.400.000 11 21.43 m 24 96
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