Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland New South Wales Sales $ 1,800,000 $ 2,499,000 Average operating assets $ 600,000 $ 510,000 Net operating income $ 180,000 $ 174,930 Property, plant, and equipment (net) $ 260,000 $ 210,000 Required: 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Which divisional manager seems to be doing the better job
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Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:
| Division | ||||
| Queensland | New South Wales | |||
| Sales | $ | 1,800,000 | $ | 2,499,000 |
| Average operating assets | $ | 600,000 | $ | 510,000 |
| Net operating income | $ | 180,000 | $ | 174,930 |
| Property, plant, and equipment (net) | $ | 260,000 | $ | 210,000 |
Required:
1. Compute each division's margin, turnover, and
2. Which divisional manager seems to be doing the better job?
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- Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below (thec urrency is the Australian dollar, denoted here as $):DivisionNew SouthQueensland WalesSales ............................................................. $4,000,000 $7,000,000Average operating assets ............................. $2,000,000 $2,000,000Net operating income ................................... $360,000 $420,000Property, plant, and equipment (net) ............ $950,000 $800,000Required:1. Compute the rate of return for each division using the return on investment (ROI) formula stated interms of margin and turnover.2. Which divisional manager seems to be doing the better job? Why?Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland New South Wales Sales $ 1,219,000 $ 2,550,000 Average operating assets $ 530,000 $ 510,000 Net operating income $ 73,140 $ 76,500 Property, plant, and equipment (net) $ 253,000 $ 203,000 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?The sales, income from operations, and invested assets for each division of Grosbeak Company are as follows: Sales Income fromOperations InvestedAssets Division E $5,000,000 $550,000 $2,400,000 Division F 4,800,000 860,000 2,500,000 Division G 7,000,000 860,000 2,900,000 a. Using the DuPont formula, determine the profit margin, investment turnover, and rate of return on investment for each division. Round profit margin to two decimal places, investment turnover to four decimal places and rate of return on investment to one decimal place. Division E Division F Division G Profit Margin % % % Investment Turnover Rate of return on investment % % % b. Which division is the most profitable per dollar invested?
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