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) Division Queensland $ 1,302,000 $ 620,000 $ 71,610 $ 239,000 New South Wales $ 2,444,000 $ 520,000 $ 61,100 $ 189,ᎾᎾᎾ Required: 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Which divisional manager seems to be doing the better job?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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)
Division
Queensland
$ 1,302,000
$ 620,000
Queensland division
New South Wales division
$ 71,610
$ 239,ᎾᎾᎾ
%
%
Required:
1. Compute each division's margin, turnover, and return on investment (ROI).
2. Which divisional manager seems to be doing the better job?
New South Wales
$ 2,444,000
$ 520,000
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.)
Margin
Turnover
$ 61,100
$ 189,000
ROI
%
pa
Transcribed Image Text: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) Division Queensland $ 1,302,000 $ 620,000 Queensland division New South Wales division $ 71,610 $ 239,ᎾᎾᎾ % % Required: 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Which divisional manager seems to be doing the better job? New South Wales $ 2,444,000 $ 520,000 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.) Margin Turnover $ 61,100 $ 189,000 ROI % pa
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