15

15 Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow (in millions of yen, denoted by ): Division Osaka Yokohama 10, 260,000 9,975,000 513,000 1,496,250 1,710,000 5,700,000 Sales Net operating income Average operating assets 10 points & 02:52:51 Required: 1. For each division, compute the ROI in terms of margin and turnover. (Do not round intermediate calculations and round your final answers to 2 decimal places.) ROI Osaka division % Yokohama division % a 2. Assume that the company evaluates performance by use of RI and that the minimum required return for any division is 24% Compute the RI for each division. RI