Exercise 11-6 (Algo) Contrasting Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Sales Net operating income Average operating assets Required: Osaka Division $ 9,200,000 Yokohama $ 22,000,000 $ 552,000 $ 2,300,000 $ 1,760,000 $ 11,000,000 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 13%. 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). ROI Osaka Yokohama % %
Exercise 11-6 (Algo) Contrasting Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Sales Net operating income Average operating assets Required: Osaka Division $ 9,200,000 Yokohama $ 22,000,000 $ 552,000 $ 2,300,000 $ 1,760,000 $ 11,000,000 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 13%. 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). ROI Osaka Yokohama % %
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 14.16E
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![Exercise 11-6 (Algo) Contrasting Return on Investment (ROI) and Residual Income [LO11-1, LO11-2]
Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions
follow:
Sales
Net operating income
Average operating assets
Required:
Osaka
Division
$ 9,200,000
Yokohama
$ 22,000,000
$ 552,000
$ 2,300,000
$ 1,760,000
$ 11,000,000
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 13%. 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).
ROI
Osaka
Yokohama
%
%
<Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc3f24d91-5679-4984-a3f3-e99786ef6535%2F55513882-cd8f-4c74-b0cf-df2c4443641e%2Flt6fbw4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 11-6 (Algo) Contrasting Return on Investment (ROI) and Residual Income [LO11-1, LO11-2]
Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions
follow:
Sales
Net operating income
Average operating assets
Required:
Osaka
Division
$ 9,200,000
Yokohama
$ 22,000,000
$ 552,000
$ 2,300,000
$ 1,760,000
$ 11,000,000
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 13%. 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).
ROI
Osaka
Yokohama
%
%
<Required 1
Required 2 >
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