Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. meiji isetan corp. of japan has two regional divis

Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama....

60.1K

Verified Solution

Question

Accounting

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
Sales $ 9,200,000 $ 22,000,000
Net operating income $ 552,000 $ 1,760,000
Average operating assets $ 2,300,000 $ 11,000,000

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 13%. Compute the residual income for each division.

3. Is Yokohamas greater amount of residual income an indication that it is better managed?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

an acidic buffer WA Which one of the following pairs of solution is not Re...

Biology
1.2K views

10.) In complex eukaryotes, what relationships exist between these DNA elements? a. Centromeres, tandemly repeated DNA and...

Physics
1.2K views

D the strains produced in the rods are in the ratio 1 2 3 4...

Basic Math
1.2K views

you have saved 1500 for a down payment and the dealer has already included any...

Basic Math
1.2K views

Show that is an eigenvalue of A and find one eigenvector v corresponding to this...

Algebra
1.2K views

1 Which of the following is true of the location of the terminal side of...

Accounting
1.2K views

On January 1, 2021, Benefactor Corporation reported the following balances related...

Accounting
1.2K views

The statement prepared to check the arithmetical accuracy of the ledger accounts is called (1...

Accounting
1.2K views

The books of the Catman Company for the year ended December 31, 20x1, showed pretax...

Accounting
1.2K views

What are the expected annual savings from a lock-box system that collects 150 cheques per...

Accounting
1.2K views

The accounting records of Azim Inc. include the following unadjusted balances at January 31: As...

Accounting
1.2K views

Balance Sheet from Adjusted Trial Balance The following is the alphabetical adjusted trial balance of...