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Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below (the currency is the Australian dollar, denoted here...
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are givenbelow (the currency is the Australian dollar, denoted here as $):Required:DivisionNew SouthQueensland WalesSales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,000,000 $7,000,000Average operating assets . . . . . . . . . . . . . . . . $2,000,000 $2,000,000Net operating income . . . . . . . . . . . . . . . . . . . $360,000 $420,000Property, plant, and equipment (net) . . . . . . . . $950,000 $800,0001. Compute the rate of return for each division using the return on investment (ROI) formulastated in terms of margin and turnover.2. Which divisional manager seems to be doing the better job? Why?
