Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below (the currency

Question:

Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below (the currency is the Australian dollar, denoted here as $):

Division Queensland New South Wales Sales S7,000,000 $4,000,000 Average operating assets $2,000,000 $2,000,000 Net opera


Required:

1.         Compute the rate of return for each division using the return on investment (ROT) formula stated in terms of margin and turnover.

2.         Which divisional manager seems to he doing the better job? Why?

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Related Book For  book-img-for-question

Managerial Accounting

ISBN: 978-0697789938

13th Edition

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

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