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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 $ 10,300,000 $33,000,000 $ 721,000 $2,970,000 $ 2,575,000 $ 16,500,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 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 3. Is Yokohama's greater amount of residual income an indication that it is better managed? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 ces For each division, compute the return on investment (ROI) in terms of margin and turnover, Osaka Yokohama RO % Required 2 > Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating income Minimum required rate of return Division A $ 6,500,000 $ 1,300,000 $364,000 21.00% Division B Division C $ 10,500,000 $9,600,000 $ 5,250,000 $ 1,920,000 $ 1,008,000 $ 273,600 19. 20% 18.00% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 20% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opp Complete this question by entering your answers in the tabs below. 5 Reg 1 Reg 2 Req 3A Reg 3B Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Margin Turnover ROI Division A Division B Division C % % % % % %

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