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
¥3,000,000 ¥9,000,000
Net operating income
¥210,000 ¥720,000
Average operating assets ¥1,000,000 ¥4,000,000
Required:
1.For each division, compute the return on investment (ROI) in terms of margin and turnover. Where necessary, carry computations to two dccimal places.
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.
3.Is Yokohama’s greater amount of residual income an indication that it is better managed? Explain.

when consumers have more money to pay for a product, the most likely situation to occur from the possible options on the list is (2) an increase in price for computer and computer accessories will happen.

companies tend to price products according to production costs, but they also take into account how much money would a consumer in certain segments be willing to pay for their product. if they have more money, the products would definitely be priced higher.

housewives doing day to day to work like cooking, laundry and so on.

a person doing a work for hobby like gardening, fishing, painting and so on.

work done for charity like taking tuition classes of poor children, providing free services to earthquake victims, a blind man in crossing road and so on.

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