Business, 14.03.2020 02:58 anicholson41
Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow (in millions of yen, denoted by ¥):
Division
Osaka Yokohama
Sales ¥ 3,000,000 ¥ 9,000,000
Net operating income ¥ 210,000 ¥ 720,000
Average operating assets ¥ 1,000,000 ¥ 4,000,000
Requirement 1:
For each division, compute the return on investment (ROI) in terms of margin and turnover. (Round your answers to 2 decimal places. Omit the "%" sign in your response.)
Osaka Yokohama
Return on investment % %
Requirement 2:
Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 15%. Compute the residual income for each division. (Omit the "¥" sign in your response.)
Osaka Yokohama
Residual income ¥ ¥
Requirement 3:
Is Yokohama's greater amount of residual income an indication that it is better managed?
eBook Links (2)references
Answers: 1
Other questions on the subject: Business
Business, 20.06.2019 18:02, lazavionadams81
Characteristics of good and bad drivers related to health care cost allocation
Answers: 3
Business, 21.06.2019 23:30, nicollexo21
San ruiz interiors provides design services to residential and commercial clients. the residential services produce a contribution margin of $450,000 and have traceable fixed operating costs of $480,000. management is studying whether to drop the residential operation. if closed, the fixed operating costs will fall by $370,000 and san ruiz’ income will
Answers: 3
You know the right answer?
Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Sele...
Questions in other subjects:
Engineering, 04.07.2019 18:10
Engineering, 04.07.2019 18:10
