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Division New South Queensland Wales $7,000,000 $2,000,000 Sales...... Average operating assets. Net operating income Property, plant, and equipment (net) $4,000,000 $2,000,000 $360,000 $950,000 $420,000 $800,000

Division New South Queensland Wales $7,000,000 $2,000,000 Sales...... Average operating assets. Net operating income Property, plant, and equipment (net) $4,000,000 $2,000,000 $360,000 $950,000 $420,000 $800,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Computing and Interpreting Return on Investment

Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:

Required:

1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover.

2. Which divisional manager seems to be doing the better job? Why?

Division New South Queensland Wales $7,000,000 $2,000,000 Sales...... Average operating assets. Net operating income Property, plant, and equipment (net) $4,000,000 $2,000,000 $360,000 $950,000 $420,000 $800,000
Transcribed Image Text:Division New South Queensland Wales $7,000,000 $2,000,000 Sales...... Average operating assets. Net operating income Property, plant, and equipment (net) $4,000,000 $2,000,000 $360,000 $950,000 $420,000 $800,000
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