Reference no: EM132562253
Computing 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
Question 1: Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover
Question 2: Which divisional manager seems to be doing the better job?Why?
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