#43

Lombard, Inc. has two Investment centers and has developed the following Information: Answer the following questions about Department A and Department B. What was the amount of Department A's average operating assets Average Operating Assets What was the amount of Department B's controllable margin Controllable Margin If Department B is able to reduce its operating assets by $100,000, what would be Department B's new ROI New ROI If Department A is able to increase its controllable margin by $60,000 as a result of reducing variable costs, what would be Department A's new ROI New ROI