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Exhibit 17

question 98

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Exhibit 17.9.A bank manager is interested in assigning a rating to the holders of credit cards issued by her bank.The rating is based on the probability of defaulting on credit cards and is as follows.


Definitions:

Controllable Margin

Controllable margin refers to the amount of profit or income that can be directly influenced by the management's decisions, usually excluding fixed costs and overhead.

Operating Assets

Assets that are used for day-to-day functioning of a business and generating revenue, such as inventory, machinery, and buildings.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated as the ratio of net profit to the initial cost of the investment.

Controllable Margin

The portion of profit or margin over which management has control, usually excluding fixed costs.

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