Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin andturnover. (Do not round intermediate calculations. Round your answers to 2 decimal places.)MarginTurnoverROIQueensland division%%New South Wales division%% Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:DivisionNew SouthQueenslandWales$ 2,016,000630,00080,640197,000Sales$Average operating assetsNet operating incomeProperty, plant, and equipment (net)864,000$540,000$60,480247,000$$$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?

Margin = Net operating income/ Sales *100 Turnover =Sales / Average operating assets ROI = Margin *…

Answered: 1. Compute the rate of return for each…

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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and
turnover. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Margin
Turnover
ROI
Queensland division
%
%
New South Wales division
%
%

Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:
Division
New South
Queensland
Wales
$ 2,016,000
630,000
80,640
197,000
Sales
$
Average operating assets
Net operating income
Property, plant, and equipment (net)
864,000
$
540,000
$
60,480
247,000
$
$
$
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?

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