Solution-What was the amount of department a average

What was the amount of department a average operating assets

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Reference no: EM13509172

Snickers Company has two investment centers and has developed the following information:

	Department A	Department B
Net operating income	$120,000	?
Average operating assets	?	$400,000
Sales	800,000	250,000
ROI	10%	12%

Required:

a) What was the amount of Department A's average operating assets?

b) What was the amount of Department B's net operating income?

c) If Department B is able to reduce its operating assets by $100,000, what would be Department B's new ROI?

d) If Department A is able to increase its net operating income by $60,000 by reducing expenses, what would be Department A's new ROI?

Reference no: EM13509172

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What was the amount of department a average operating assets

Reference no: EM13509172

Reference no: EM13509172

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