Selected operating data for two divisions of Outback Brewing, Ltd. of Australia are as follows: Division Sales Average operating assets Net operating income Property, plant, and equipment (net) Queensland New South Wales Required: 1. Compute the rate of return for each division using the ROI formula stated in terms of margin and turnover. (Do not round intermediate calculations and round your final answers to 2 decimal places.) Rate of Return Queensland Queens land $4,000,000 2,000,000 % % News South Wales 440,000 396,000 2. Which divisional manager seems to be doing the better job? New South Wales $6,600,000 4,400,000 410,000 1,800,000
Selected operating data for two divisions of Outback Brewing, Ltd. of Australia are as follows: Division Sales Average operating assets Net operating income Property, plant, and equipment (net) Queensland New South Wales Required: 1. Compute the rate of return for each division using the ROI formula stated in terms of margin and turnover. (Do not round intermediate calculations and round your final answers to 2 decimal places.) Rate of Return Queensland Queens land $4,000,000 2,000,000 % % News South Wales 440,000 396,000 2. Which divisional manager seems to be doing the better job? New South Wales $6,600,000 4,400,000 410,000 1,800,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Selected operating data for two divisions of Outback Brewing, Ltd. of Australia are as follows:
Division
Sales
Average operating assets
Net operating income
Property, plant, and equipment (net)
Queensland
New South Wales
Required:
1. Compute the rate of return for each division using the ROI formula stated in terms of margin and turnover. (Do not round
intermediate calculations and round your final answers to 2 decimal places.)
Rate of Return
Queensland
Queens land
$4,000,000
2,000,000
%
%
News South Wales
440,000
396,000
2. Which divisional manager seems to be doing the better job?
New South
Wales
$6,600,000
4,400,000
410,000
1,800,000
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