Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data
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Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow (in millions of yen, denoted by ): Sales Net operating income Average operating assets Division Osaka Yokohama 1,500,000 3,600,000 105,300 288, 810,000 2,700,000 Required: 1. For each division, compute the ROI in terms of margin and turnover. (Do not round intermediate calculations and round your final 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 8%. Compute the Rl for each division. RI Osaka division Yokohama division 3. Is Yokohama's Rl an indication that it is better managed than Osaka? O Yes
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