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Meiji Isctan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Select data on the two divisions follow: TAKE TWO Division

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Meiji Isctan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Select data on the two divisions follow: TAKE TWO Division Osaka Yokohama $4,000,000 $10,000,000 $210,000 $720,000 $1,000,000 $4,000,000 Sales ................... Net operating income Average operating assets Osaka net operating income $200,000 turnover when Required: 1. For each division, compute the return on investment (ROI) in terms of margin and tumover necessary, cany computations to two decimal places. 2. Assume that the company evaluates performance using residual income and that the required rate of return for any division is 15%. Compute the residual income for each divine 3. Is Yokohama's greater amount of residual income an indication that it is better managed that the main

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