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A yearly management program for sheep in north-west Queensland has increased lambing percentage by > 20% compared with the district average. Greasy wool production of ewes over 4 years (1988-91) averaged 4.3 kg and wethers over 2 years (1990-91) averaged 5.7 kg. Managing sheep using this program increased wool production of the flock compared with the district average. The economic advantages of running breeding ewes or wethers was influenced by wool and sheep markets. During low wool prices ($2.82/kg net selling costs, 1990; $2.44/kg net selling costs, 1991) it was estimated that a 65% lamb weaning rate was needed for returns from the ewe and wether flock to be equal. Gross margins ($/DSE) for the ewe flock were 21.80, 17.07, 8.53 and 5.42 in years 1988, 1989, 1990, 1991 respectively and 5.82 and 5.01 for wethers in 1990 and 1991 respectively. Gross margin ($/DSE) of combined ewe and wether enterprises on properties representing the district, averaged 16.50, 14.20, 8.00 and 5.00 in years 1988, 1989, 1990 and 1991 respectively. The management program implemented at Toorak generated higher gross margins than the district average particularly during the years of higher wool prices.