Computing and Interpreting Return on Investment (ROI) LO11–1 Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:

Division Queensland New South Wales Sales ��������������������������������������������������������������������� $4,000,000 $7,000,000 Average operating assets ��������������������������������� $2,000,000 $2,000,000 Net operating income ����������������������������������������� $360,000 $420,000 Property, plant, and equipment (net) ��������������� $950,000 $800,000 Required:
1. Compute each division’s margin, turnover, and return on investment (ROI).
2. Which divisional manager seems to be doing the better job? Why?