Answer the Following Questions About Department a and Department B

Essay

$\begin{array}{l}\text { Lombard, Inc. has two investment centers and has developed the following information: }\\\begin{array} { l c r r } & \text { Department A } & \text { Department B } \\\text { Departmental controllable margin } & \$ 120,000 & ? \\\text { Average operating assets } & ? & \$ 400,000 \\\text { Sales } & 800,000 & 250,000 \\\text { ROI } & 10 \% & 12 \%\end{array}\end{array}$
Answer the following questions about Department A and Department B.
1. What was the amount of Department A's average operating assets? $____________.
2. What was the amount of Department B's controllable margin? $____________.
3. If Department B is able to reduce its operating assets by $100000 Department B's new ROI would be ____________.
4. If Department A is able to increase its controllable margin by $60000 as a result of reducing variable costs Department A's new ROI would be _________________.