E12–1 Time allowed: 15 minutes Selected operating data for two divisions of Outback Brewing Ltd of Australia are given below:

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 As far as you can tell from the data, which divisional manager seems to be doing the better job? Why?

Division New South Wales Queensland Sales 4,000,000 7,000,000 Average operating assets 2,000,000 2,000,000 Net operating profit 360,000 420,000 Property, plant, and equipment (net) 950,000 800,000