Selected operating data for two divisions of Outback Brewing, Ltd., of Australia

Question

Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Required: 1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. (Round your Turnover answers to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) 2. Which divisional manager seems to be doing the better job? Queensland division New South Wales division

Explanation / Answer

2)Queensland as its ROI is higher than New south wales

Margin (A) sales (B) ROI(A/B) Queensland 87210 969000 .09 or 9%   [87210/969000] New south 181440 3024000 .06 or 6%   [181440/3024000]

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