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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
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 12,600,000 25,200,000 Net operating income Average operating assets 793,800 2,520,000 2,520,000 8,400,000 Required: 1. For each division, compute the ROI in terms of margin and tumover. (Do not round intermediate calculations and round your final answers to 2 decimal places.) ROI %6 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 28% Compute the RI for each division, RI Osaka division Yokohama division 3. Is Yokohama's RI an indication that it is better manageethan Osaka Yes NO
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