- Exercise 11 6 Algo Contrasting Return On Investment Roi And Residual Income Lo11 1 Lo11 2 Ten Corporation Of Japa 1 (30.33 KiB) Viewed 103 times
- Exercise 11 6 Algo Contrasting Return On Investment Roi And Residual Income Lo11 1 Lo11 2 Ten Corporation Of Japa 2 (35.4 KiB) Viewed 103 times
Exercise 11-6 (Algo) Contrasting Return on Investment (ROI) and Residual Income (LO11-1, LO11-2] Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Sales Net operating income Average operating assets Division Osaka Yokohama $ 10,800,000 $ 38,000,000 $ 648,000 $3,040,000 $ 3,600,000 $ 19,000,000 Required: 1. For each division, compute the return on investment (RO) 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 15%. Compute the residual income for each division Complete this question by entering your answers in the tabs below. Required 1 Required 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. Osaka Yokohama Residual income