Exercise 10-8 (Static) Computing and Interpreting Return on Investment (ROI) (LO10-1) Selected operating data for...
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Exercise 10-8 (Static) Computing and Interpreting Return on Investment (ROI) (LO10-1) Selected operating data for two divisions of Outback Brewing, Limited, of Australia are given below: Sales Average operating assets Net operating income Property, plant, and equipment (net) Division Queensland New South Wales $ 4,000,000 $ 7,000,000 $ 2,000,000 $ 2,000,000 $ 360,000 $ 420,000 $ 950,000 $ 800,000 Required: 1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. 2. Which divisional manager seems to be doing the better job? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round Turnover answers to 1 decimal place.) Turnover ROI Queensland division Margin % % % New South Wales division % Required 1 Required 2 Which divisional manager seems to be doing the better job? O Queensland division ONew South Wales division
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