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Meiji Isetan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: 20 pon
Meiji Isetan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: 20 pon Division Osaka Yokohama $ $ Sales Net operating income Average operating 10,100,000 31,000,000 $ 808,000 $3,100,000 $ $ 2,525,000 assets 15,500,000 10 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 17%. 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. For each division, compute the return on investment (ROI) in terms of margin and turnover. RO Osaka Yokohama Required 1 Required 2 >
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