Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland
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Question:
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:
Division | ||||
Queensland | New South Wales | |||
Sales | $ | 1,302,000 | $ | 2,444,000 |
Average operating assets | $ | 620,000 | $ | 520,000 |
Net operating income | $ | 71,610 | $ | 61,100 |
Property, plant, and equipment (net) | $ | 239,000 | $ | 189,000 |
Required:
1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover.
2. Which divisional manager seems to be doing the better job?
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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