Exercise 9-8 Computing and Interpreting Return on Investment (ROI) [LO9-1]

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

	Division
	Queensland		New South Wales
Sales	$	1,624,000	$	2,444,000
Average operating assets	$	580,000	$	520,000
Net operating income	$	154,280	$	158,860
Property, plant, and equipment (net)	$	258,000	$	208,000

Required:
1.	Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. (Round your Turnover answers to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)

2.

Which divisional manager seems to be doing the better job?

	Queensland division
	New South Wales division