mheducation.com cises Help Save& ExitSubmit Saved Check my work Selected operati
ID: 2524158 • Letter: M
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mheducation.com cises Help Save& ExitSubmit Saved Check my work Selected operating data for two divisions of Outback Brewing, Ltd, of Australia are given below Nev South Queensland Wales Sales Net operating ineome Property, plant, and equipment (net) 784,000 1,485,000 $560,000495,000 S 82,320 118,800 245,000 195,000 Required: 1 Compute the rate of return for each division using the return on investment (ROD formula stated in terms of margin and turnover 2. Which divisional manager seems to be doing the better job? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the rate of return for each division using the return on investment turnover. (Round your answers to 2 decimal places) (ROI) formula stated in terms of margin ROI New South Wales division Required 2 K Prev 5 of 5 Next MacBook AiExplanation / Answer
1. Margin = Net Operating Income / Sales *100
Turnover = Sales / Average Operating Assets
ROI = Margin * Turnover
Hence the correct answer is :
2. Since the ROI of the New South Wales division is higher, the correct answer is New South Wales division
Margin Turnover ROI Queensland division 10.50 % 1.40 % 14.70 % New South Wales division 8.00 % 3.00 % 24.00 %Related Questions
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