Selected operating data on the two divisions of York Company are given below
Division
Eastern Western
Sales $1,000,000 $1,750,000
Average operating assets $500,000 $500,000
Net operating income $90,000 $105,000
Property, plant, and equipment $250,000 $200,000
1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margins and turnover.
2. Which divisional manager seems to be doing the better job? Why?