Selected operating data for two divisions of Outback Brewing, Ltd. of Australia are as follows:

	Division
	Queensland		New South Wales
Sales	$	3,400,000	$	5,400,000
Average operating assets		1,360,000		3,600,000
Net operating income		578,000		400,000
Property, plant, and equipment (net)		270,000		1,600,000

Required:

1. Compute the rate of return for each division using the ROI formula stated in terms of margin and turnover. (Do not round intermediate calculations and round your final answers to 2 decimal places.)

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

multiple choice

• Queensland

• News South Wales