Question

elected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:

	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

Required:

1. Compute each division’s margin, turnover, and return on investment (ROI).

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

Which divisional manager seems to be doing the better job?

Answer 1