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: Division New South Sales Average operating assets Net operating income Property, plant, and equipment (net) Queensland Wales $1,624,000 $2,444,000 S 580,000 S 520,000 S 154,280 S 158,860 S 258,000 S 208,000 Required: 1. Compute the rate of return for each division using the return on investment (ROl) formula stated in terms of margin and turnover. (Round your Turnover answers to 2 decimal places. Round your Margin and Rol percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34.) Margin over ROI Queensland division New South Wales division 2. Which divisional manager seems to be doing the better job? Queensland division New South Wales division

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Queensland New south wales Sales       1,624,000.00     2,444,000.00 Average operating assets        580,000.00        520,000.00 Net operating income        154,280.00        158,860.00 Margin = NOI/Sales 9.50% 6.50% Turnover = Sales /Avg operating assets                     2.80                     4.70 ROI = Margin*Turnover 26.60% 30.55% New south wales division seems to be doing better job

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