Question: Selected operating data for two divisions of Outback Brewing, Limited, of Australia are given below: Division Queensland New South Wales Sales $ 825,000 $ 2,688,000

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

Division
Queensland New South Wales
Sales $ 825,000 $ 2,688,000
Average operating assets $ 550,000 $ 640,000
Net operating income $ 56,100 $ 80,640
Property, plant, and equipment (net) $ 246,000 $ 196,000

Required:

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

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

Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. (Round your answers to 2 decimal places.)

Margin Turnover ROI
Queensland division % %
New South Wales division % %

Which divisional manager seems to be doing the better job?

Queensland divisionradio button unchecked1 of 2
New South Wales divisionradio button unchecked2 of 2

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!