Required:

For each division, compute the return on investment $($ ROI in terms of margin and turnover.

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.

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.

Is Yokohama's greater amount of residual income an indication that it is better managed?

Yes

No