Exercise 11-8 (Algo) 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	$	1,711,000	$	2,832,000
Average operating assets	$	590,000	$	590,000
Net operating income	$	102,660	$	113,280
Property, plant, and equipment (net)	$	259,000	$	209,000

Required:

1. Compute each division's margin, turnover, and return on investment (ROI).

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

Required 1 Required 2 Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin a turnover. (Round your answers to 2 decimal places.) Turnover ROI Queensland division New South Wales division Margin 9.00% 6.00 % % % Required 1 Required 2 > Required 1 Required 2 Which divisional manager seems to be doing the better job? Queensland division New South Wales division