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CoursHeroTranscribedText: Exercise 10-6 Contrasting Return on Investment (ROI) and Residual Income [LO10-1, LO10-2] Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Salam 10, 400, 000 34, 000, 000 Net operating income 520, 000 2, 390, 000 Average operating assets 2. 600, 000 17, 000, 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 12%. Compute the residual income for each division. 3. Is Yokohama's greater amount of residual income an Indication that it is better 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. Osaka Yokohama RO 9% Required 1 Required 2 Required 3 Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 12%. Compute the residual income for each division. Osaka Yokohama Residual income Required 1 Required 2 Required 3 Is Yokohama's greater amount of residual income an indication that it is better managed? Yes No

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