Below is financial information for two departments of a manufacturing company:

Required: a) Calculate the amount of the Finishing departments average operating assets b) Calculate the amount of the Machine departments controllable margin c) If the Finishing department can increase its controllable margin by $60,000 as a result of reducing variable costs, what would be the new ROI? d) If the Machine department can reduce its operating assets by 100,000 what would be its new ROI?

Machine ? Finishing Controllable margin $120,000 Average operating assets Sales 800,000 n. $400,000 250,000 ROI 10% 12%