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8. (8 points) Verizon Company has two investment centers and has developed the following information: Product Sales Service Sales Departmental controllable margin Average operating assets
8. (8 points) Verizon Company has two investment centers and has developed the following information: Product Sales Service Sales Departmental controllable margin Average operating assets Sales ROI $120,000 800,000 10% $400,000 250,000 12% Instructions Answer the following questions about Product Sales and Service Sales. 1. What was the amount of Product Sales' average operating assets? 2. What was the amount of Service Sales' controllable margin? 3. If Service Sales is able to reduce its operating assets by 4 If Product Sales able to increase its controllable margin by $100, 000, then the new ROI would be $60,000 as a result of reducing variable costs, then the new ROI would be
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