Business, 21.03.2020 02:12, sairaanwar67

Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below (the currency is the Australian dollar, denoted here as $):

Division
Queensland New South
Wales
Sales $4,000,000 $7,000,000
Average operating assets $2,000,000 $2,000,000
Net operating income $360,000 $420,000
Property, plant, and equipment (net) $950,000 $800,000

Requirement 1:

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

ROI
Queensland ?
New South Wales ?

Requirement 2:
Which divisional manager seems to be doing the better job?

Answers: 2

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Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below (th...