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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: Osaka Division $
Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Osaka Division $ 10,600,000 Sales Net operating income $ 742,000 Average operating assets $ 2,650,000 Yokohama $ 36,000,000 $ 3,240,000 $ 18,000,000 Required: 1. For each division, compute the return on investment (ROI). 2. Compute the residual income for each division assuming the company's minimum required rate of return is 16%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each division, compute the return on investment (ROI). ROI Osaka Yokohama % % Required 1 Required 2 >
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To calculate the Return on Investment ROI for each division you use the formula ROI Net ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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