please answer both if possible, thank you!

Exercise 11-8 (Algo) Computing and Interpreting Return on Investment (ROI) [LO11-1]

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

	Division
	Queensland	New South Wales
Sales	$ 1,456,000	$ 2,745,000
Average operating assets	$ 560,000	$ 610,000
Net operating income	$ 116,480	$ 137,250
Property, plant, and equipment (net)	$ 256,000	$ 206,000

Required:

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

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

Exercise 11-7 (Algo) Transfer Pricing from the Viewpoint of the Entire Company [LO11-3]

Division A manufactures electronic circuit boards. The boards can be sold either to Division B of the same company or to outside customers. Last year, the following activity occurred in Division A:

Selling price per circuit board	$ 185
Variable cost per circuit board	$ 112
Number of circuit boards:
Produced during the year	21,400
Sold to outside customers	14,400
Sold to Division B	7,000

Sales to Division B were at the same price as sales to outside customers. The circuit boards purchased by Division B were used in an electronic instrument manufactured by that division (one board per instrument). Division B incurred $270 in additional variable cost per instrument and then sold the instruments for $670 each.

Required:

1. Calculate the net operating incomes earned by Division A, Division B, and the company as a whole.

2. Assume Division As manufacturing capacity is 21,400 circuit boards. Next year, Division B wants to purchase 8,000 circuit boards from Division A rather than 7,000. (Circuit boards of this type are not available from outside sources.) From the standpoint of the company as a whole, should Division A sell the 1,000 additional circuit boards to Division B or continue to sell them to outside customers.