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 follow: Sales Net operating income Average operating assets Osaka Division Yokohama $ 10,000,000 $ 30,000,000 $ 700,000 $ 2,700,000 $ 2,000,000 $ 15,000,000 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 rate of return for 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. Required 1 Required 2 For each division, compute the return on investment (ROI) in terms of margin and turnover. ROI Osaka Yokohama % % Required 1 Required 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. Residual income Osaka Yokohama