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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: Sales Net operating

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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: Sales Net operating income Average operating assets Division Osaka Yokohama $ 10,000,000 $ 30,000,000 $ 700.000 $ 2,700,000 S 2,000,000 $ 15,000,000 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 15%. Compute the residual income for each division. Osaka Yokohama Average operating assets Net operating income Minimum required retum Residual income $ 0 $

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