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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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
2. Which divisional manager seems to be doing the better job?
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