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 ):

	Division
	Osaka		Yokohama
Sales		3,570,000		7,755,000
Net operating income		178,500		542,850
Average operating assets		850,000		2,820,000

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.)

2. Assume that the company evaluates performance by use of RI and that the minimum required return for any division is 17%. Compute the RI for each division.

3. Is Yokohamas RI an indication that it is better managed than Osaka?

multiple choice

• Yes

• No