25. Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow:

Division

Osaka Yokohama

Sales 10,200,000 32,000,000

Net Operating Income 816,000 3,200,000

Average Operating Assets 2,550,000 16,000,000

1. For each division, compute the return on investment (ROI) in terms of margin and turnover. (Do not round intermediate calculations. Enter your answers as a percent (i.e., 0.12 should be entered as 12).)

Osaka:

Yokohama:

2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 17%. Compute the residual income for each division.

Oksaka Yokohama

Average Operating Assets

Net Operating Income

Minimum Required Return on Average Assets

Residual Income