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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

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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 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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