Question
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland New South Wales Sales $ 2,275,000 $ 2,781,000
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:
| Division | ||
|---|---|---|
| Queensland | New South Wales | |
| Sales | $ 2,275,000 | $ 2,781,000 |
| Average operating assets | $ 650,000 | $ 515,000 |
| Net operating income | $ 232,050 | $ 200,232 |
| Property, plant, and equipment (net) | $ 265,000 | $ 215,000 |
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?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The ASQ Auditing Handbook
Authors: J. P. Russell,
4th Edition
0873898478, 978-0873898478
