Selected operating data on the two divisions of York Company are given below

Division

Eastern Western

Sales $1,000,000 $1,750,000

Average operating assets $500,000 $500,000

Net operating income $90,000 $105,000

Property, plant, and equipment $250,000 $200,000

1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margins and turnover.

2. Which divisional manager seems to be doing the better job? Why?