E12–1 Time allowed: 15 minutes Selected operating data for two divisions of Outback Brewing Ltd of Australia are given below:

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 As far as you can tell from the data, which divisional manager seems to be doing the better job? Why?

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Division New South Wales Queensland Sales 4,000,000 7,000,000 Average operating assets 2,000,000 2,000,000 Net operating profit 360,000 420,000 Property, plant, and equipment (net) 950,000 800,000