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- Tan Corporation Of Japan Has Two Regional Divisions With Headquarters In Osaka And Yokohama Selected Data On The Two Di 1 (36.49 KiB) Viewed 58 times
- Tan Corporation Of Japan Has Two Regional Divisions With Headquarters In Osaka And Yokohama Selected Data On The Two Di 2 (39.95 KiB) Viewed 58 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 $ 10,200,000 $ 816,000 $ 2,550,000 Required: 1. For each division, compute the return on investment (ROI). 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 17%. Compute the residual income for each division. Residual income Yokohama $ 32,000,000 $ 3,200,000 $ 16,000,000 Complete this question by entering your answers in the tabs below. Osaka 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 17%. Compute the residual income for each division. Yokohama Required 1 Required >