Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services to residential developers. Last year, the company had net operating income of $450,000 on sales of $1,900,000. The company's average operating assets for the year were $2,100,000 and its minimum required rate of return was 13%. Required Compute the company's residual income for the year. Residual income Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Yokohama Osaka Sales Net operating income Average operating assets 2,750,000 20,000,000 $ 11,000,000 40,000,000 $ 880,000 4,000,000 Required 1. For each division, compute the return on investment (ROl) 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 18%. 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 Required 3 For each division, compute the return on investment (ROI) in terms of margin and turnover Osaka Yokohama ROI Required 1 Required 2 Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: pivision Osaka Yokohama Sales Net operating income Average operating assets 2,750,000 $ 11,000,000 40,000,000 $ 880,000$ 4,000,000 20,000,000 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 any division is 18%. 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 Required 2 Required3 Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 18%. Compute the residual income for each division. OsakaY Yokohama Residual income Required 1 Required 3 > 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 Net operating income 11,000,000 40,000,000 $ 880,000 4,000,000 Average operating assets 2,750,000 20,000,000 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 any division is 18%. 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 Required 3 Is Yokohama's greater amount of residual income an indication that it is better managed? OYes ONO Required 2 Required 3
