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Meiji Isetan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Sales Net aperating incone Average operating assets Division ROI $ Osaka 9,200,000 $552,000 $ 2,300,000 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 13%. 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. Osaka Yokohama $22,000,000 $ 1,760,000 $ 11,000,000 Required 1 Required 2 Required 3 For each division, compute the return on investment (ROI) in terms of margin and turnover. 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 aperating incone Average operating assets Division ROI $ Osaka 9,200,000 $552,000 $ 2,300,000 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 13%. 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. Osaka Yokohama $22,000,000 $ 1,760,000 $ 11,000,000 Required 1 Required 2 Required 3 For each division, compute the return on investment (ROI) in terms of margin and turnover. Yokohama < Required 1 Required 2 >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Meiji Isetan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Sales Net aperating incone Average operating assets Osaka $9,200,000 $552,000 $ 2,300,000 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 13%. Compute the residual income for each division. 3. Is Yokohama's greater amount of residual income an indication that it is better managed? ROI Division Complete this question by entering your answers in the tabs below. Required 3 Required 1 Required 2 For each division, compute the return on investment (ROI) in terms of margin and turnover. Osaka Yokohama $ 22,000,000 $1,760,000 $11,000,000 Yokohama % (Required 1 Required 2 >
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 aperating incone Average operating assets Osaka $9,200,000 $552,000 $ 2,300,000 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 13%. Compute the residual income for each division. 3. Is Yokohama's greater amount of residual income an indication that it is better managed? ROI Division Complete this question by entering your answers in the tabs below. Required 3 Required 1 Required 2 For each division, compute the return on investment (ROI) in terms of margin and turnover. Osaka Yokohama $ 22,000,000 $1,760,000 $11,000,000 Yokohama % (Required 1 Required 2 >
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