1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Rashid [163]
3 years ago
14

Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland New South

Wales Sales $ 784,000 $ 1,485,000 Average operating assets $ 560,000 $ 495,000 Net operating income $ 82,320 $ 118,800 Property, plant, and equipment (net) $ 245,000 $ 195,000 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
Business
1 answer:
PtichkaEL [24]3 years ago
8 0

Answer:

Queensland 14.7%

New South Wales is 24.0%

Explanation:

This is a case of modified  return on investment since the question was specific that the  return on investment  should in terms margin and assets turnover.

The first task would be to compute margin and turnover  whereas the return on investment  would be  the multiples of both performance measures.

Margin =operating income/sales

Asset turnover=sales/average operating assets

operating income/sales*sales/average operating assets=operating income/average assets

This question also require proofing the above formula as I have done.

                                 Margin                  Assets turnover                      ROI

Queensland$82,320/$784,000=10.5%$784,000/$560,000=1.4     14.7%

South Wales$118,800/$1,485,000=8% $1,485,000/$495,000=         24.0%

R0I=margin*assets turnover

Queensland=10.5%*1.4=14.7%

New south sales=8%*3=24%

You might be interested in
Describe a scenario that forced you to wrestle with your values?
Trava [24]

Answer:

To use brainly or to not use brainly. I dont like cheating but sometimes I realy need help.

Explanation:

7 0
3 years ago
Why is using money as a medium of exchange preferable to bartering?
Y_Kistochka [10]

Answer:

Money as a medium of exchange is more preferable because of its less cumbersome nature.

Explanation:

Money as a medium of exchange is more suitable because of its less cumbersome nature. Money was invented because of the inefficient nature of the barter system.

Money is easily stored compared to a barter system.

Money as a medium of exchange eliminates the barter system's problem of double coincidence of wants. Barter works when you trade things you own for things you want. If for example you want a bicycle and you own a goat, you have to look for someone who wants a goat and owns a bicycle willing to make an exchange, which can be quite difficult.

Money is an acceptable medium of exchange to all parties which makes it more preferable to bartering.

8 0
3 years ago
Money placed in an insured bank account so that it will be available for future emergencies is referred to as __________.
lawyer [7]
It is referred to as a life savings account<span />
7 0
3 years ago
Read 2 more answers
Strategic planning (select all that apply):
Afina-wow [57]

Answer:

C. requires visionary and directional thinking

Explanation:

Strategic planning: This planning applies to the long-term planning regarding available resources, costs and time that helps to achieve an organization's goals and objectives efficiently and effectively by considering  the strategic vision, and strategic mission of the company

It also deals with the long term decisions that help the organization in a better way with respect to the better returns in terms of profit

8 0
3 years ago
Paige wants to have an income of $38,000 a year when she retires. She finds
steposvetlana [31]

Answer: $258,874.30

Explanation:

5 0
3 years ago
Other questions:
  • Why did laborers sign contracts with an x?
    12·1 answer
  • FILL IN THE BLANK
    9·1 answer
  • Under what circumstances should a company's mangement team give serious consideration to bidding aggressively to win contracts t
    15·1 answer
  • Exercise 7-4A Effect of recognizing uncollectible accounts expense on financial statements: Percent of revenue allowance method
    7·1 answer
  • Brown's Frozen BBQ Sandwiches are made with goat meat drenched in a sweet onion sauce. These sandwiches would not be popular in
    15·1 answer
  • __________are achieved when the average unit cost of a good or service decreases as the capacity and/or volume of throughput inc
    5·1 answer
  • Angela's monthly disposable income is ​$2928. She has monthly expenses of ​$ 2664 ​(including recreational expenses of ​$379​) a
    6·1 answer
  • In an acquisition the firm being purchased is the and the firm which is purchasing the other firm is the
    15·1 answer
  • Ursa Major Solar uses Opportunity to track sales of solar energy products. The company has two separate sales teams that focus o
    8·1 answer
  • With ________, the seller pays both the cost of loading and transporting the product to the customer.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!