Selected operating data for two divisions of Outback Brewing, Limited, of Australia are given below. Division Queensland $936,000 $ 520,000 New South Wales $ 1,972,000 $ 580,000 $ 147,900 $ 199,000 Sales Average operating assets Net operating income 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? $ 98,280 $ 249,000
Selected operating data for two divisions of Outback Brewing, Limited, of Australia are given below. Division Queensland $936,000 $ 520,000 New South Wales $ 1,972,000 $ 580,000 $ 147,900 $ 199,000 Sales Average operating assets Net operating income 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? $ 98,280 $ 249,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
Transcribed Image Text:Selected operating data for two divisions of Outback Brewing. Limited, of Australia are given below:
Sales
Average operating assets
Queensland
$936,000
$ 520,000
Net operating income
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?
Queensland division
New South Wales division
Division
Margin
$ 98,280
$ 249,000
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.
Note: Round your answers to 2 decimal places.
New South Wales
$ 1,972,000
$ 580,000
$ 147,900
$ 199,000
Turnover
Coquined
ROI
Required 2 >
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