Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below. Division Sales Average operating assets Net operating income Property, plant, and equipment (net) 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? Complete this question by entering your answers in the tabs below. Queensland division New South Wales division Queensland $ 1,080,000 $ 600,000 $ 70,200 $ 241,000 Required 1 Required 2 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 2 decimal places.) Margin % Turnover New South Wales $ 2,385,000 $ 530,000 $ 83,475 $191,000

Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below. Division Sales Average operating assets Net operating income Property, plant, and equipment (net) 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? Complete this question by entering your answers in the tabs below. Queensland division New South Wales division Queensland $ 1,080,000 $ 600,000 $ 70,200 $ 241,000 Required 1 Required 2 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 2 decimal places.) Margin % Turnover New South Wales $ 2,385,000 $ 530,000 $ 83,475 $191,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 3PA

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