Meiji Isetan 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 1 Required 2 Required: . 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 12%. 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. ROI Osaka $ 9,100,000 $ 455,000 $ 2,275,000 Osaka % Division Required 3 For each division, compute the return on investment (ROI) in terms of margin and turnover. Yokohama Yokohama $ 21,000,000 $ 1,470,000 $ 10,500,000 % < Required 1 Required 2 >
Meiji Isetan 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 1 Required 2 Required: . 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 12%. 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. ROI Osaka $ 9,100,000 $ 455,000 $ 2,275,000 Osaka % Division Required 3 For each division, compute the return on investment (ROI) in terms of margin and turnover. Yokohama Yokohama $ 21,000,000 $ 1,470,000 $ 10,500,000 % < Required 1 Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Meiji Isetan 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 1 Required 2
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 12%. 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.
ROI
Osaka
$ 9,100,000
$ 455,000
$ 2,275,000
Osaka
%
Division
Required 3
For each division, compute the return on investment (ROI) in terms of margin and turnover.
Yokohama
$ 21,000,000
$ 1,470,000
$ 10,500,000
Yokohama
%
< Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7e41d40-efe3-4133-b5c9-0b4850673fd1%2F4dfa4d30-a640-40db-b4bf-f4724289f564%2F3g8biue_processed.png&w=3840&q=75)
Transcribed Image Text:Meiji Isetan 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 1 Required 2
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 12%. 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.
ROI
Osaka
$ 9,100,000
$ 455,000
$ 2,275,000
Osaka
%
Division
Required 3
For each division, compute the return on investment (ROI) in terms of margin and turnover.
Yokohama
$ 21,000,000
$ 1,470,000
$ 10,500,000
Yokohama
%
< Required 1
Required 2 >
![Meiji Isetan 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 1 Required 2
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 12%. Compute the residual income for each division.
3. Is Yokohama's greater amount of residual income an indication that it is better managed?
Division
Osaka
$ 9,100,000
$ 455,000
$ 2,275,000
Complete this question by entering your answers in the tabs below.
Residual income
Required 3
Osaka
Yokohama
$ 21,000,000
$ 1,470,000
$ 10,500,000
Assume that the company evaluates performance using residual income and that the minimum required rate of return for any
division is 12%. Compute the residual income for each division.
Yokohama
< Required 1
Required 3 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7e41d40-efe3-4133-b5c9-0b4850673fd1%2F4dfa4d30-a640-40db-b4bf-f4724289f564%2F05s4n1m_processed.png&w=3840&q=75)
Transcribed Image Text:Meiji Isetan 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 1 Required 2
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 12%. Compute the residual income for each division.
3. Is Yokohama's greater amount of residual income an indication that it is better managed?
Division
Osaka
$ 9,100,000
$ 455,000
$ 2,275,000
Complete this question by entering your answers in the tabs below.
Residual income
Required 3
Osaka
Yokohama
$ 21,000,000
$ 1,470,000
$ 10,500,000
Assume that the company evaluates performance using residual income and that the minimum required rate of return for any
division is 12%. Compute the residual income for each division.
Yokohama
< Required 1
Required 3 >
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