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Req. 1 req 2 req 3 Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the
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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: Division Yokohama $ 40,000, e00 $ 4,000,ee0 $ 20,000,000 Osaka $ 11,000,00e 880, 000 $ 2,750, 000 Sales Net operating income Average operating assets ook 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 18%. Compute the residual income for each division. 3. Is Yokohama's greater amount of residual income an indication that it is better managed? Hint Print Complete this question by entering your answers in the tabs below. terences Required 1 Required 2 Required 3 For each division, compute the return on investment (ROI) in terms of margin and tumover. Osaka Yokohama ROI Required 2 > Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisi follow: Division Osaka Yokohama Sales Net operating income Average operating assetS $ 11,000,0ee 880, 000 $2,750,00e S 40,000,000 S 4,000,eea S 20,000, 000 Book 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 18%. Compute the residual income for each division. 3. Is Yokohama's greater amount of residual income an indication that it is better managed? Hint Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Assume that the company evaluates performance using residual income and that the minimum reguired rate of return for any division is 18%. Compute the residual income for each division. Osaka Yokohama Residual income
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