Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Sales Average operating assets Net operating income Property, plant, and equipment (net) 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? Queensland division New South Wales division Division Queens land $ 1,071,000 $ 510,000 $ 107,100 $ 251,000 Complete this question by entering your answers in the tabs below. Margin Required 1 Required 2 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.) % % New South Wales $2,016,000 $ 560,000 $ 141,120 $ 201,000 Turnover ROI

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 11E: The operating income and the amount of invested assets in each division of Conley Industries are as...
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Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:
Sales
Average operating assets
Net operating income
Property, plant, and equipment (net)
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?
Queensland division
New South Wales division
Division
Queens land
$ 1,071,000
$ 510,000
$ 107,100
$ 251,000
Complete this question by entering your answers in the tabs below.
Margin
Required 1 Required 2
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.)
%
%
New South
Wales
$2,016,000
$ 560,000
$ 141,120
$ 201,000
Turnover
ROI
Transcribed Image Text:Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Sales Average operating assets Net operating income Property, plant, and equipment (net) 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? Queensland division New South Wales division Division Queens land $ 1,071,000 $ 510,000 $ 107,100 $ 251,000 Complete this question by entering your answers in the tabs below. Margin Required 1 Required 2 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.) % % New South Wales $2,016,000 $ 560,000 $ 141,120 $ 201,000 Turnover ROI
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