I need help computing minimum required return in problem 2 mc remaining: 3:38:17

Question

I need help computing minimum required return in problem 2

mc remaining: 3:38:17 2.00 poin Mal sctan Cop ofJapan has two regional dsions wth headquarters In Osaka and Yokohama Scloctod data on tho two clvslons tollow Yckohama Net cpe atng incoma 3 815,C00 3,200,000 Required: 1. For each divis on, compure the return on investment (ROI) in terms of margin and turnower. (Do net round intermediate calculations) 2 Assumo that the company c al a cs portor ance usng ros ual income and that thC minimum rogurcc a o otchim for an dNtslon s 17% comput hc n sidual incon c for cach dNtsion Aver age operating assets265 Net opercting incere 00.000 equired rahum S 016,00D 3,200,000 3. Is Yekchama's grealer amount of resicual income an indicaion that it is better managed? ReferenceseBook & Resources Worksheet Learning Oblectve: 12-01 Copute retum on Investment ROI) and show how changes In sales, expenses, and assebs affect ROI

Explanation / Answer

2 Osaka Yokohama Average operating assets 2550000 16000000 net operating income 816000 3200000 Minimum required return 433500 2720000 Residual income 382500 480000

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