Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below (thec urrency is the Australian dollar, denoted here as $):DivisionNew SouthQueensland WalesSales ............................................................. $4,000,000 $7,000,000Average operating assets ............................. $2,000,000 $2,000,000Net operating income ................................... $360,000 $420,000Property, plant, and equipment (net) ............ $950,000 $800,000Required:1. Compute the rate of return for each division using the return on investment (ROI) formula stated interms of margin and turnover.2. Which divisional manager seems to be doing the better job? Why?
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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