Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow:

Required 1 Required 2Required 3 Assume that the company evaluates performance using residual income and that the minimun division is 16%. Compute the residual income for each division. Osaka Yokohama Residual income Is Yokohama's greater amount of residual income an indication that it is better managed? Yes ONo