Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow. Division Osaka $ १,600,000 । 26,000,000 Yokohama Sales Net operating income Average operating assets 672,000 $ 2,340,000 $ 3,200,000 $ 13,000,000 %24 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 16%. Compute the residual income for each division. Complete this question by entering your answers in the tabs below.

Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow. Division Osaka $ १,600,000 । 26,000,000 Yokohama Sales Net operating income Average operating assets 672,000 $ 2,340,000 $ 3,200,000 $ 13,000,000 %24 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 16%. Compute the residual income for each division. Complete this question by entering your answers in the tabs below.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Selected operating data for two divisions of Outback Brewing, Ltd. of Australia are as follows: Division Sales Average operating assets Net operating income Property, plant, and equipment (net) Queensland New South Wales Required: 1. Compute the rate of return for each division using the ROI formula stated in terms of margin and turnover. (Do not round intermediate calculations and round your final answers to 2 decimal places.) Rate of Return Queensland Queens land $4,000,000 2,000,000 % % News South Wales 440,000 396,000 2. Which divisional manager seems to be doing the better job? New South Wales $6,600,000 4,400,000 410,000 1,800,000
A. Compute the divisional ROI for the Campus Division. B. Compute the divisional RI for the Campus Division.
Alpesh
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Sales Average operating assets Net operating income Property, plant, and equipment (net)) Queensland division New South Wales division Queensland Margin Division Required: 1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. 2. Which divisional manager seems to be doing the better job? % % Complete this question by entering your answers in the tabs below. $ 969,000 $ 510,000 Required 1 Required 2 Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Turnover $ 87,210 $ 267,000
Meman
For its three investment centers, Ayayai Company accumulates the following data: Sales Controllable margin Average operating assets $2,480,000 1,736,000 6,200,000 The return on investment 11 $4,960,000 2.480,000 9,920.000 Compute the return on investment (ROI) for each center. 25 % 111 $4,960,000 4,464,000 12.400.000 11 21.43 m 24 96
kai.8
ROI and Residual Income A multinational corporation has a number of divisions, two of which are the North American Division and the Pacific Rim Division. Data on the two divisions are as follows: North American Pacific Rim Average operating assets $15,000,000 $6,700,000 Operating income 1,250,000 610,000 Minimum required return 7 % 7 % Round all rates of return to four significant digits. Required: 1. Compute residual income for each division. North American $ fill in the blank 1 Pacific Rim $ fill in the blank 2 By comparing residual income, is it possible to make a useful comparison of divisional performance? 2. Compute the residual rate of return by dividing the residual income by the average operating assets. Enter your answers as percentages, rounded to two decimal places. For example, the decimal value .03827 would be entered as "3.83" percent. North American fill in the blank 4 % Pacific Rim fill in the blank 5 % Is it possible now to…
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland New South Wales Sales $ 855,000 $ 2,200,000 Average operating assets $ 570,000 $ 550,000 Net operating income $ 44,460 $ 48,400 Property, plant, and equipment (net) $ 244,000 $ 194,000 Required: 1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. 2. Which divisional manager seems to be doing the better job?
Please answer questions No. 1 to 6 of Jay Arr Company. Please provide a complete solution. Thank You
Please Fo not Give image format
1- Assume Division A offers to sell Q) 15,000 units to Division B for $74 and that Division B refuses this price. What will be the loss in potential prodits for the company whole as a whole