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) Required: Queensland Division $ 1,375,000 $550,000 $ 96,250 $ 255,000 New South Wales $ 2,222,000 $ 505,000 $ 88,880 $205,000 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 11E: The operating income and the amount of invested assets in each division of Conley Industries are as...
icon
Related questions
Question

am.100.

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)
Required:
Queensland
Division
$ 1,375,000
$550,000
$ 96,250
$ 255,000
New South Wales
$ 2,222,000
$ 505,000
$ 88,880
$205,000
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
%
%
<Required 1
Required 2 >
Transcribed Image Text: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) Required: Queensland Division $ 1,375,000 $550,000 $ 96,250 $ 255,000 New South Wales $ 2,222,000 $ 505,000 $ 88,880 $205,000 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 % % <Required 1 Required 2 >
Expert Solution
steps

Step by step

Solved in 2 steps

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