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EXERCISE 122 Computing and Interpreting ROI [LO2 - CC4] Selected operating data for two divisions of Outback Brewing, Ltd. of Australia are as follows: Page

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EXERCISE 122 Computing and Interpreting ROI [LO2 - CC4] Selected operating data for two divisions of Outback Brewing, Ltd. of Australia are as follows: Page 623 Division Queensland New South Wales 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 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

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