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

	Division
	Queensland		New South Wales
Sales	$	3,900,000	$	6,000,000
Average operating assets		1,300,000		4,000,000
Net operating income		273,000		390,000
Property, plant, and equipment (net)		240,000		1,700,000

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

a.Queensland

b. News South Wales