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	$	10,600,000	$	36,000,000
Net operating income	$	742,000	$	3,240,000
Average operating assets	$	2,650,000	$	18,000,000

Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. (Do not round intermediate calculations) Osaka Yokohama ROI % 2. 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. Osaka Yokohama Average operating assets Net operating income Minimum required return Residual income $ 0 $ 0 3. Is Yokohama's greater amount of residual income an indication that it is better managed? Yes O No