Essay
Evaluation of responsibility centers
Shown below are the current-year data for two investment centers of Chelsea Trading,Inc.The total assets utilized by each of these investment centers during the year amount to $1,500,000:
(a)Compute the following measures for each investment center: 
(b)Assume that a $3,000 monthly expenditure for advertising could increase the monthly sales of either investment center by $20,000.Which center should the company advertise to receive the maximum benefit from its advertising expenditure? Center ________.Explain your reasoning:
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(a)
(b)Center 2.Since Center 2 has the...View Answer
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Correct Answer:
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(b)Center 2.Since Center 2 has the...View Answer
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