Business, 14.03.2020 02:58 anicholson41

Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow (in millions of yen, denoted by ¥):

Division
Osaka Yokohama
Sales ¥ 3,000,000 ¥ 9,000,000
Net operating income ¥ 210,000 ¥ 720,000
Average operating assets ¥ 1,000,000 ¥ 4,000,000

Requirement 1:
For each division, compute the return on investment (ROI) in terms of margin and turnover. (Round your answers to 2 decimal places. Omit the "%" sign in your response.)

Osaka Yokohama
Return on investment % %

Requirement 2:

Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 15%. Compute the residual income for each division. (Omit the "¥" sign in your response.)

Osaka Yokohama
Residual income ¥ ¥

Requirement 3:
Is Yokohama's greater amount of residual income an indication that it is better managed?

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Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Sele...

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