3 Exercise 10-6 Contrasting Return on Investment (ROI) and Residual Income (L010-1, L010-2) Meiji tsetan Corp. of Japon has two regional divisions with headquarters in Osaka and Yokohama, Selected data on the two divisions follow Division Osaka Yokohana $ 10,000.00 $ 10.000,00 $ 700.000 $2,700, NO $ 2,000,000 $ 15,000,000 Net operating income Averare operating assets 1 Required: 1. For each division, compute the retum on investment (ROI) in terms of margin and turnover 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 15% Compute the residual income for each division 3. Is Yokohamo's greater amount of residual income an indication that it is better managed? Complete this question by entering your answers in the tabs below. Required Required 2 Required For gach division, compute the return on investment (ROI) in terms of margin and turnover Osaka Yokohama ROL Required 2 > 3 Exercise 10-6 Contrasting Return on Investment (ROI) and Residual Income (L010-1, L010-2) Meli Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama Selected data on the two divisions follow eloou Sales Net operating income Average operating assets Division Osaka Yokohama $10,000,000 $30,000,000 $ 700,000 $ 2.700,000 $ 2,000,000 $ 15.000, Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover 2. Assume that the company evaluates performance using residual income and that the minimum required rote of return for any division is 15% Compute the residual income for each division 3. Is Yokohama's greater amount of residual income on indication that it is better managed? Complete this question by entering your answers in the tabs below. tances Required 1 Required 2 Required Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 15%. Compute the residual income for each division Osaka Yokohama Residual income Exercise 10-6 Contrasting Return on Investment (ROI) and Residual Income [LO10-1, LO10-2) Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama Selected data on the two divisions follow Sales Net operating Income Average operating assets Division Osaka Yokohama $ 10,000, cee $30,000,000 $ 700,000 $2,700.000 $ 2,000,000 $15.000.000 Required: 1. For each division, compute the retum on investment (ROI) in terms of margin and turnover, 2. Assume that the company evaluates performance using residual income and that the minimum required rote of return for any division is 15% Compute the residual income for each division 3. Is Yokohama's greater amount of residual income an indication that it is better managed? Complete this question by entering your answers in the tabs below. nes Required 1 Required 2 Required a Is Yokohama's greater amount of residual income an indication that it is better managed Yes NO
