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

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...
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Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:

 

  Division
Queensland New South Wales
Sales $ 855,000 $ 2,200,000
Average operating assets $ 570,000 $ 550,000
Net operating income $ 44,460 $ 48,400
Property, plant, and equipment (net) $ 244,000 $ 194,000

 

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?

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