Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama....
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Accounting
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
3,570,000
7,755,000
Net operating income
178,500
542,850
Average operating assets
850,000
2,820,000
Required:
1. For each division, compute the ROI in terms of margin and turnover. (Do not round intermediate calculations and round your final answers to 2 decimal places.)
2. Assume that the company evaluates performance by use of RI and that the minimum required return for any division is 17%. Compute the RI for each division.
3. Is Yokohamas RI an indication that it is better managed than Osaka?
multiple choice
Yes
No
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