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Tan Corporation of Japan has two regional divisions with headquarters In Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales
Tan Corporation of Japan has two regional divisions with headquarters In Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 10, 108, 090 $ 31, 090, Gee Net operating income $ 808, 090 $ 3, 106, 090 Average operating assets $ 2, 525,090 $ 15, 509, 090 Required: 1. For each division, compute the return on Investment (ROI). 2. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each division, compute the return on investment (ROI). Osaka Yokohama ROI %
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