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Meiji lsetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Sales

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Meiji lsetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Sales Net operating income Average operating assets S 10,400,000 34,000,000 $ 520,000 2,380,000 $ 2,600,000 17,000,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. (Do not round intermediate calculations) Osaka Yokohama ROI 2. Assume that the company evaluates performance using residual income and that the minimum required rate of retum for any division is 12%. Compute the residual income for each division. Yokohama Osaka Average operating assets Net operating income Minimum required return Residual income

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