Question
5. Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:...
5.
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:
| Division | ||||
| Queensland | New South Wales | |||
| Sales | $ | 928,000 | $ | 1,479,000 |
| Average operating assets | $ | 580,000 | $ | 493,000 |
| Net operating income | $ | 74,240 | $ | 73,950 |
| Property, plant, and equipment (net) | $ | 243,000 | $ | 193,000 |
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?
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division...
Selected operating data for two divisions of Outback Brewing,
Ltd., of Australia are given below:
Division
Queensland
New South Wales
Sales
$
928,000
$
1,479,000
Average operating assets
$
580,000
$
493,000
Net operating income
$
74,240
$
73,950
Property, plant, and equipment
(net)
$
243,000
$
193,000
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...
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division...
Selected operating data for two divisions of Outback Brewing,
Ltd., of Australia are given below:
Division
Queensland
New South Wales
Sales
$
855,000
$
2,200,000
Average operating assets
$
570,000
$
550,000
Net operating income
$
44,460
$
48,400
Property, plant, and equipment (net)
$
244,000
$
194,000
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...
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division...
Selected operating data for two divisions of Outback Brewing,
Ltd., of Australia are given below:
Division
Queensland
New South Wales
Sales
$
1,375,000
$
2,222,000
Average operating assets
$
550,000
$
505,000
Net operating income
$
96,250
$
88,880
Property, plant, and equipment
(net)
$
255,000
$
205,000
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...
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division...
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.
(Round your answers to 2...
elected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division...
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...
Selected sales and operating data for three divisions of different structural engineering firms are given as...
Selected sales and operating data for three divisions of
different structural engineering firms are given as follows:
Division A
Division B
Division C
Sales
$
6,000,000
$
10,000,000
$
9,100,000
Average operating assets
$
1,200,000
$
2,500,000
$
1,820,000
Net operating income
$
306,000
$
910,000
$
213,850
Minimum required rate of return
20.00
%
36.40
%
17.00
%
Required:
1. Compute the return on investment (ROI) for each division
using the formula stated in terms of margin and turnover....
Selected sales and operating data for three divisions of different structural engineering firms are given as...
Selected sales and
operating data for three divisions of different structural
engineering firms are given as follows:
Division A
Division B
Division C
Sales
$
12,400,000
$
35,500,000
$
20,400,000
Average
operating assets
$
3,100,000
$
7,100,000
$
5,100,000
Net operating
income
$
508,400
$
426,000
$
510,000
Minimum required
rate of return
7.00
%
7.50
%
10.00
%
Required:
1. Compute the return
on investment (ROI) for each division using the formula stated in
terms of margin and turnover....
Selected sales and operating data for three divisions of different structural engineering firms are given as...
Selected sales and
operating data for three divisions of different structural
engineering firms are given as follows:
Division A
Division B
Division C
Sales
$
15,300,000
$
35,300,000
$
20,240,000
Average
operating assets
$
3,060,000
$
7,060,000
$
5,060,000
Net operating
income
$
703,800
$
529,500
$
526,240
Minimum required
rate of return
9.00
%
9.50
%
10.40
%
Required:
1. Compute the return
on investment (ROI) for each division using the formula stated in
terms of margin and turnover....
Chapter 10 Question 2: Selected sales and operating data for three divisions of different structural engineering...
Chapter 10 Question 2:
Selected sales and operating data for three divisions of
different structural engineering firms are given as follows:
Division A
Division B
Division C
Sales
$
6,800,000
$
10,800,000
$
9,900,000
Average operating assets
$
1,360,000
$
2,700,000
$
1,980,000
Net operating income
$
401,200
$
1,069,200
$
311,850
Minimum required rate of return
23.00
%
39.60
%
20.00
%
Required:
1. Compute the return on investment (ROI) for each division
using the formula stated in terms...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 2 minutes ago
asked 5 minutes ago
asked 7 minutes ago
asked 11 minutes ago
asked 17 minutes ago
asked 19 minutes ago
asked 31 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago
asked 2 hours ago