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Sales Net operating income Average operating assets Division Osaka Yokohama $ 11,000,000 $ 40,000,000 $ 880,000 $ 4,000,000 $ 2,750,000 $ 20,000,000 Required: 1. For
Sales Net operating income Average operating assets Division Osaka Yokohama $ 11,000,000 $ 40,000,000 $ 880,000 $ 4,000,000 $ 2,750,000 $ 20,000,000 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For each division, compute the return on investment (ROI) in terms of margin and turnover. Osaka Yokohama ROI % % Sales Net operating income Average operating assets Division Osaka Yokohama $ 11,000,000 $ 40,000,000 $ 880,000 $ 4,000,000 $ 2,750,000 $ 20,000,000 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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. Osaka Yokohama Residual income Daurad Durad2 Sales Net operating income Average operating assets Division Osaka Yokohama $ 11,000,000 $ 40,000,000 $ 880,000 $ 4,000,000 $ 2,750,000 $ 20,000,000 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Is Yokohama's greater amount of residual income an indication that it is better managed? Yes Ono
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