Exercise 11-8 (Algo) Computing and Interpreting Return on Investment (ROI) [LO11-1) Selected operating data for two divisions of Outback Brewing, Limited, of Australia are given below: Division New South Queensland Wales Sales Average operating assets Net operating income Property, plant, and equipment (net) 1,296,000 $ 540,000 $ 129,600 $ 254,000 2,655,000 $ 590,000 $ 185,850 $ 204,000 Required: 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Which divisional manager seems to be doing the better job?
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- Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division New South Queensland Wales $ 2,016,000 630,000 80,640 197,000 Sales $ Average operating assets Net operating income Property, plant, and equipment (net) 864,000 $ 540,000 $ 60,480 247,000 $ $ $ 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?Selected operating data for two divisions of Outback Brewing, Limited, of Australia are given below: Net operating income Division Queensland $ 825,000 $ 550,000 $ 56,100 $ 246,000 New South Wales $ 2,688,000 $ 640,000 $ 80,640 $ 196,000 Sales Average operating assets 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? 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. (Round your answers to 2 decimal places.) Queensland division New South Wales division Margin Turnover ROI % % % %Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland New South Wales Sales $ 1,219,000 $ 2,550,000 Average operating assets $ 530,000 $ 510,000 Net operating income $ 73,140 $ 76,500 Property, plant, and equipment (net) $ 253,000 $ 203,000 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?
- Exercise 11-14 (Algo) Evaluating New Investments Using Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales $ 12,920,000 $ 28,920,000 $ 26,150,000 Average operating assets $ 3,230,000 $ 7,230,000 $ 5,230,000 Net operating income $ 516,800 $ 462,720 $ 758,350 Minimum required rate of return 7.00% 7.50% 14.50% Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 8% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity?Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland New South Wales Sales $ 1,800,000 $ 2,499,000 Average operating assets $ 600,000 $ 510,000 Net operating income $ 180,000 $ 174,930 Property, plant, and equipment (net) $ 260,000 $ 210,000 Required: 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Which divisional manager seems to be doing the better job?Problem 11-19 (Algo) Comparison of Performance Using Return on Investment (ROI) [L011- Comparative data on three companies in the same service industry are given below. Required: 2. Fill in the missing information. (Round the "Turnover" and "ROI" answers to 2 decimal places.) Company A Sales $ 3,910,000 2$ 1,878,000 Net operating income $ 469,200 356,820 Average operating assets Margin $ 1,700,000 $ 2,660,000 4 % Turnover 1.50 Return on investment (ROI) 11.40 %
- Exercise 10-12 (Algo) Evaluating New Investments Using Return on Investment (ROI) and Residual Income [LO10-1, LO10-2] Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating income Minimum required rate of return Required: Division A $ 12,630,000 Division B $ 14,735,000 Division C $ 26,312,500 $ 3,157,500 $ 631,500 $ 7,367,500 $ 589,400 $ 5,262,500 $ 842,000 14% 10% 16% 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or…Selected operating data for two divisions of Outback Brewing, Limited, of Australia are given below: Sales Average operating assets Queensland $ 1,984,000 $ 620,000 $ 148,800 Division New South Wales $ 2,907,000 $ 570,000 Net operating income $ 145,350 Property, plant, and equipment (net) $ 262,000 $ 212,000 Required: 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Which divisional manager is doing the better job? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute each division's margin, turnover, and return on investment (ROI). Note: Round your answers to 2 decimal places. Queensland division New South Wales division Margin Turnover ROI % % % % Required 2 >Selected operating data for two divisions of Outback Brewing, Limited, of Australia are given below: 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 is doing the better job? Queensland division New South Wales division Queensland $928,000 $ 580,000 $ 74,240 $ 243,000 Complete this question by entering your answers in the tabs below. Margin Division Required 1 Required 2 Compute each division's margin, turnover, and return on investment (ROI). Note: Round your answers to 2 decimal places. % % New South Wales $1,479,000 $493,000 $73,950 $ 193,000 Turnover Required 1 ROI Required 2 >
- 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 1 Required 2 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? Complete this question by entering your answers in the tabs below. Queensland division New South Wales division Queensland $ 1,984,000 $ 620,000 $ 148,800 $ 262,000 Margin Division 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.) % % Turnover New South Wales $ 2,907,000 $570,000 $ 145, 350 $ 212,000Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales 12440000$ 35550000$ 25550000$ Average operating assets 3110000$ 7110000$ 5110000$ Net operating income 547360$ 639900$ 740950$ Minimum required rate of return 10.00% 10.50% 14.50$ Required: 1.Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2.Compute the residual income for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. a.If performance is being measured by ROI, which division or divisions will probably accept the opportunity? Reject? b.If performance is being measured by residual income, which division or divisions will probably accept the opportunity? Reject?(J) Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division ADivision BDivision CSales$ 12,120,000$ 28,120,000$ 20,120,000Average operating assets$ 3,030,000$ 7,030,000$ 5,030,000Net operating income$ 496,920$ 449,920$ 503,000Minimum required rate of return7.00%7.50%10.00%Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 8% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity