Help Save & Exit Submit Exercises Check my work Meiji Isetan Corp. of Japan has

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Help Save & Exit Submit Exercises Check my work Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two dlvisions follow: ivis Sales Net operating income Averago operating assete 9,700,000 $27,000,000 776,000 2,700,000 13,500,000 $ 2,425,000 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 17%. Compute the residual income for each division. 3. Is Yokohama's greater amount of residual income an indication that it is beter managed? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For each division, compute the return on investment (ROI) in terms of margin and turnover ROI Required 2> Prev 4 of 5 Next > MacBook Air

Explanation / Answer

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Solution:

Osaka Division ROI= (776,000 / 9,700,000) * (9,700,000 / 2,425,000) * 100 = 32%

Yokohama Division ROI= (2,700,000 / 27,000,000) * (27,000,000 / 13,500,000) * 100 = 20%

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