Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland
Question:
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:
| Division | ||
|---|---|---|
| Queensland | New South Wales | |
| Sales | $ 969,000 | $ 3,024,000 |
| Average operating assets | $ 510,000 | $ 540,000 |
| Net operating income | $ 87,210 | $ 181,440 |
| Property, plant, and equipment (net) | $ 267,000 | $ 217,000 |
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. Which divisional manager seems to be doing the better job?
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Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:
| Division | ||
|---|---|---|
| Queensland | New South Wales | |
| Sales | $ 969,000 | $ 3,024,000 |
| Average operating assets | $ 510,000 | $ 540,000 |
| Net operating income | $ 87,210 | $ 181,440 |
| Property, plant, and equipment (net) | $ 267,000 | $ 217,000 |
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. Which divisional manager seems to be doing the better job?
Prev
Question 5 of 5 Total5 of 5
Visit question mapThis is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button.Next
Which divisional manager seems to be doing the better job?
|
Expert Answer:
