Answer the Following Questions About Department a and Department B

question 139

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 _________________.

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Definitions:

Acceptable Name

A term or name that is officially recognized and widely accepted in a specific field or context.

Compound

A chemical combination of two or more elements in precise ratios.

Acceptable Name

A name for a chemical substance that follows current nomenclature rules and is agreed upon by scientific organizations.

Compound

A substance made up of two or more different elements that are chemically bonded together in a fixed ratio.