Selected operating data for two divisions of Outback Brewing, Limited, of Australia are given below: New South Wales $ 2,781,000 $ 515,000 $ 200,232 $ 215,000 Sales Average operating assets Net operating income Property, plant, and equipment (net) Division Queensland $ 2,275,000 $ 650,000 $ 232,050 $ 265,000 Required: 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Which divisional manager seems to be doing the better job?

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 14.16E
icon
Related questions
Question

Vishu

Exercise 11-8 (Algo) Computing and Interpreting Return on Investment (ROI) [LO11-1]
Selected operating data for two divisions of Outback Brewing, Limited, of Australia are given below:
Sales
Average operating assets
Net operating income
Property, plant, and equipment (net)
Queensland
$ 2,275,000
$ 650,000
$ 232,050
$ 265,000
Required:
1. Compute each division's margin, turnover, and return on investment (ROI).
2. Which divisional manager seems to be doing the better job?
Queensland division
New South Wales division
Division
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.)
Margin
New South Wales
$ 2,781,000
$ 515,000
$ 200,232
$215,000.
Turnover
< Required 1
ROI
Required 2 >
Transcribed Image Text:Exercise 11-8 (Algo) Computing and Interpreting Return on Investment (ROI) [LO11-1] Selected operating data for two divisions of Outback Brewing, Limited, of Australia are given below: Sales Average operating assets Net operating income Property, plant, and equipment (net) Queensland $ 2,275,000 $ 650,000 $ 232,050 $ 265,000 Required: 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Which divisional manager seems to be doing the better job? Queensland division New South Wales division Division 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.) Margin New South Wales $ 2,781,000 $ 515,000 $ 200,232 $215,000. Turnover < Required 1 ROI Required 2 >
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Transfer Pricing
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning