to produce tracker the electronics division used 2 000 000 of average operating asse 638049

To produce Tracker, the Electronics Division used $2,000,000 of average operating assets to generate $260,000 of controllable margin. Assume a different division produced a product called Sea Dog, which used $4,000,000 to generate $460,000 of controllable margin.

Sea Dog required twice as many operating assets to achieve the same level of residual income.