Selected 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 | $950,000 | $800,000 |
Required:
- Compute the rate of return (or each division using the return on investment (ROI) formula stated in terms of margin and turnover. (Round Turnover answers to 1 decimal place)
- Which division seems to be doing a better job?