Meiji Isetan Corp. of Japan has two regional divisions with headquaters in Osaka and Yokohama. Selected data on the two divisions follow (in millions of yen,denoted by Y)

Division

	Osaka	Yokohama
Sales	Y4,264,00	7,480,000
Net operating income	213,200	598,400
Average operating assets	820,000	2,720,000

Required:

For each division, compute the ROI in terms of margin and turnover. (Do not round intermediate calculations and round your answers to 2 decimal places.)

	ROI
Osaka division		%
Yokohama division		%

2. Assume that the company evaluates performance by use of RI and that the minimum required return for any division is 20%. Compute the RI for each division.

	Residual Income(RI)
Osaka division
Yokohama division

3. Is Yokohama's RI an indication that it is better managed than Osaka?