Question: Exercise 11- 8 Computing Operating data for two divisions of Outback Brewing, Ltd. of Australia are given below: Division Queensland New South Wales Sales $4,000,000

Exercise 11- 8 Computing 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

  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?Why?

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