Selected operating data for two divisions of Outback Brewing, Limited, of Australia are given below: Net operating income Division Queensland $ 825,000 $ 550,000 $ 56,100 $ 246,000 New South Wales $ 2,688,000 $ 640,000 $ 80,640 $ 196,000 Sales Average operating assets Property, plant, and equipment (net) Required: 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Which divisional manager seems to be doing the better job? Complete this question by entering your answers in the tabs below. 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. (Round your answers to 2 decimal places.) Queensland division New South Wales division Margin 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 16E
icon
Related questions
Question
Selected operating data for two divisions of Outback Brewing, Limited, of Australia are given below:
Net operating income
Division
Queensland
$ 825,000
$ 550,000
$ 56,100
$ 246,000
New South Wales
$ 2,688,000
$ 640,000
$ 80,640
$ 196,000
Sales
Average operating assets
Property, plant, and equipment (net)
Required:
1. Compute each division's margin, turnover, and return on investment (ROI).
2. Which divisional manager seems to be doing the better job?
Complete this question by entering your answers in the tabs below.
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. (Round your answers to 2 decimal places.)
Queensland division
New South Wales division
Margin
Turnover
ROI
%
%
%
%
Transcribed Image Text:Selected operating data for two divisions of Outback Brewing, Limited, of Australia are given below: Net operating income Division Queensland $ 825,000 $ 550,000 $ 56,100 $ 246,000 New South Wales $ 2,688,000 $ 640,000 $ 80,640 $ 196,000 Sales Average operating assets Property, plant, and equipment (net) Required: 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Which divisional manager seems to be doing the better job? Complete this question by entering your answers in the tabs below. 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. (Round your answers to 2 decimal places.) Queensland division New South Wales division Margin Turnover ROI % % % %
Expert Solution
steps

Step by step

Solved in 2 steps with 3 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning