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Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow:

Division

Osaka Yokohama

Sales $ $10,600,000$ $ $36,000,000$

Net operating income $ $742,000$ $ $3,240,000$

Average operating assets $ $2,650,000$ $ $18,000,000$

Required:

For each division, compute the return on investment $($ROI$).$

Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is $16\%.$ Compute the residual income for each division.