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

$

10,800,000

$

38,000,000

Net operating income

$

648,000

$

3,040,000

Average operating assets

$

3,600,000

$

19,000,000

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.