Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below (the
c urrency is the Australian dollar, denoted here as $):
Division
New South
Queensland Wales
Sales ............................................................. $4,000,000 $7,000,000
Average operating assets ............................. $2,000,000 $2,000,000
Net operating income ................................... $360,000 $420,000
Property, plant, and equipment (net) ............ $950,000 $800,000
Required:
1. Compute the
terms of margin and turnover.
2. Which divisional manager seems to be doing the better job? Why?
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