Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:...
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Accounting
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:
Division
Queensland
New South Wales
Sales
$
855,000
$
2,200,000
Average operating assets
$
570,000
$
550,000
Net operating income
$
44,460
$
48,400
Property, plant, and equipment (net)
$
244,000
$
194,000
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?
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 your answers to 2 decimal places.)
Margin
Turnover
ROI
Queensland division
%
%
New South Wales division
%
%
Which divisional manager seems to be doing the better job?
Queensland division
New South Wales division
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