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Exercise 11-6 (Algo) Contrasting Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Tan Corporation of Japan has two regional divisions with headquarters in
Exercise 11-6 (Algo) Contrasting Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Sales Net operating income $ 588,000 Average operating assets $ 2,450,000 Osaka Division $ 9,800,000 Yokohama $ 2,240,000 $ 14,000,000 $ 28,000,000 Required: 1. For each division, compute the return on investment (ROI). 2. Compute the residual income for each division assuming the company's minimum required rate of return is 14%. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the residual income for each division assuming the company's minimum required rate of return is 14%. Osaka Yokohama Residual income $ 0 S < Required 1 Required 2 >
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