Selected operating data for two divisions of Outback Brewing, Ltd. of Australia are as follows: Required: 1.

Question:

Selected operating data for two divisions of Outback Brewing, Ltd. of Australia are as follows:

Required:

1. Compute the rate of return for each division using the ROI formula stated in terms of margin and turnover.

2. Using the data, identify which divisional manager seems to be doing the better job. Why?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Introduction to Managerial Accounting

ISBN: 978-1259105708

5th Canadian edition

Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan

See More Books

Question Posted: Oct 25, 2019 11:53 AM

See More Questions

Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below (the currency is the Australian dollar, denoted here as $): Required: 1. Compute the rate of return...
Compute the rate of return for the following cash flow. Year Cash Flow 1-5...........-$233 6-10.........+1000
Compute the rate of return for the following cash flow to within 0.5%. Year Cash Flow 0.................-$640 1......................0 2...................100 3...................200...
Google, the immensely popular Web search engine, has been touted as the closest thing the Web has to an ultimate answer machine. Although this is debatable, of course, it is far more difficult to...
Find the next three terms in each sequence and write a recursive formula. a. 42, 45, 48 . . . b. 16, 40, 100, . . .
Extreme SpA is a newly established entity. It was set up by an entrepreneur who is generally interested in the business of providing engineering and operational support services to aircraft...
What can you do to make the work more meaningful for such a diverse group?(p. 93)
Manceville Air has just produced the first unit of a large industrial compressor that incorporated new technology in the control circuits and a new internal venting system. The first unit took 112...
75 View Policies Current Attempt in Progress Pharoah Company has 46,000 shares of $10 par value common stock outstanding. It declares a 11% stock dividend on December 1 when the market price per...
Knight, Corp., a lamp manufacturer, provided the following information for the year ended December 31, 2012: Requirements 1. Prepare a schedule of cost of goods manufactured. 2. What is the unit...
Provide the missing data in the following tabulation: Division Alpha Bravo Charlie $12,000,000 Sales ? $ 1,200,000 Net operating income 210,000 Average operating assets $1,600,000 ? Margin 7% 8% ?...
Klinker Corporation consists of three segments: North America, Europe, and Asia. Revenues during 20X3 for the three segments were $1,200,000, $3,800,000, and $800,000, respectively. Variable costs...
The diagram shows a sketch of a field in the shape of a triangle ABC. Given AB(vector) = 30i + 40j metres and AC(vector) = 40i 60j metres, a. Find BC(vector) b. Find the size of BAC, in degrees, to...
A year-end cut-off error occurred in 2017. A large shipment of nonperishable supplies arrived from South America on the last day of 2017 and had been left in the shipping containers outside the main...
15. [5] It's not so difficult to incorporate time-varying volatility into the BSM model as long as the time variation is not random. Assume a BSM economy, but this time, assume that the volatility of...
3.6. Explain and discuss the potential benefits to be gained by using blade twist, plan- form taper, low solidity, large radius, and low rotational speed for the main rotor of a heavy lift helicopter...
2. A VRM (Voltage Regulator Modul) is used to supply the voltageto the CPU of a computer. In the new generation of microprocessors,whose power consumption is 100W, the input voltage to the VRM is12V...
Alvarado Company produced 6,400 units of product that required 5.5 standard direct labor hours per unit. The standard variable overhead cost per unit is $5.80 per direct labor hour. The actual...
The mode of a continuous random variable having density is the value of for which attains its maximum. Compute the mode of in cases (a), (b), and (c) of Theoretical Exercises 5.13. Theoretical...
A crop-dusting plane flies over a level field at a height of 25 ft. If the dust leaves the plane through a 30 angle and hits the ground after the plane travels 75 ft, how wide a strip is dusted? See...
Which group will have the greatest interest in the success of a hospitality business? a. Owners b. Managers c. Creditors d. Vendors
Which is the formula a manager would use to calculate a return on investment (ROI)? a. Money earned on funds invested / Funds invested = ROI b. Funds invested / Money earned on invested funds = ROI...
One year ago, an individual invested $75,000 in a business and today that investment is worth $100,000. What was this investors ROI for the year? a. 33.3% b. 25.0% c. 40.0% d. 133%
Kelley Enterprises In October 1989, Pat Kelley.wus in his office, preparing the 1990 budget and contemplating the recent races of his business. Orders had been plentiful Lately that he though that...
The MegaMart Company began 2024 with inventory of 15,000 units at a cost of $6 per unit. During 2024, 55,000 units were purchased for $8.00 each. Sales for the year totaled 61,500 units leaving 8,500...
How much would Juanita's monthly premium be for a 10-year term insurance policy with a face value of $260,000, based on Table 19-1 and Table 19-2 (in $)? She turned 24 years old on her last birthday....

Selected operating data for two divisions of Outback Brewing, Ltd. of Australia are as follows: Required: 1.

Question:

Division New South Wales Queensland Sales $3,500,000 $6,000,000 Average operating assets 1,000,000 3,000,000 Net operating income 420,000 360,000 Property, plant, and equipment (net) 400,000 1,900,000

Step by Step Answer:

1 ROI computations Queensland Division ROI 420000 3500000 35000...View the full answer

Introduction to Managerial Accounting

Students also viewed these Business questions