Answer:
Queensland division has ROI of 35.7%
New South Wales division has ROI of 38.88%
The divisional manager at New South Sales division has a higher ROI and seems to doing better job
Explanation:
The return on investment stated in terms of margin and turnover=net operating income/sales*sales/average operating assets
For Queensland division return on investment is computed thus:
net operating income is $232,050
sales is $2,275,000
average operating assets is $650,000
return on investment=$232,050/$2,275,000*$2,275,000/$650,000=35.70%
For New South Wales division return on investment is computed thus:
net operating income is $200,232
sales is $2,781,000
average operating assets is $515,000
return on investment=$200,232/$2,781,000*$2,781,000/$515,000=38.88%
