elected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Sales Average operating assets Net operating income Property, plant, and equipment (net) Division Queensland $ 928,000 $ 580,000 $ 74,240 $ 243,000 New South Wales $ 1,479,000 $ 493,000 $ 73,950 $ 193,000 equired: Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. 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. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Queensland division New South Wales division Margin Turnover ROI % % % % < Required 1 Required 2 >

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 37P
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Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:
Sales
Average operating assets
Net operating income
Property, plant, and equipment (net)
Required:
Division
Queensland
$ 928,000
$ 580,000
$ 74,240
$ 243,000
New South Wales
$ 1,479,000
$ 493,000
$ 73,950
$ 193,000
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?
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. (Do not round intermediate calculations. 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, Ltd., of Australia are given below: Sales Average operating assets Net operating income Property, plant, and equipment (net) Required: Division Queensland $ 928,000 $ 580,000 $ 74,240 $ 243,000 New South Wales $ 1,479,000 $ 493,000 $ 73,950 $ 193,000 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? 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. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Queensland division New South Wales division Margin Turnover ROI % % % % < Required 1 Required 2 >
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