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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 $

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


Required:
1.

Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 1 decimal place.)


Margin Turnover ROI
Eastern division % %
Western division % %


2. Which divisional manager seems to be doing the better job?
Western division
Eastern division

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