Question
Osaka Yokohama Sales $11,000,000 $40,000,000 Net operating income $880,000 $4,000,000 Average operating assets $2,750,000 $20,000,000 1. For each division, compute the ROI in terms of
| Osaka | Yokohama | |
| Sales | $11,000,000 | $40,000,000 |
| Net operating income | $880,000 | $4,000,000 |
| Average operating assets | $2,750,000 | $20,000,000 |
1. For each division, compute the 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 18%. Compute the residual income for each division.
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Financial And Managerial Accounting 15th Edition Text Only
Authors: Jan Williams
15th Edition
B005FCGT4O
