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Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Sales Average operating assets Division Queensland $ 1,984,000 $
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Sales Average operating assets Division Queensland $ 1,984,000 $ 620,000 New South Wales $ 2,907,000 $570,000 $ 145,350 Net operating income $ 148,800 Property, plant, and equipment (net) $ 262,000 $ 212,000 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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