Business, 06.08.2019 21:30 tatirocks1870

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 $ 9,800,000 $ 28,000,000 net operating income $ 588,000 $ 2,240,000 average operating assets $ 2,450,000 $ 14,000,000 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 14%. compute the residual income for each division. 3. is yokohama’s greater amount of residual income an indication that it is better managed?

Answers: 3

Show answers

Answers

Answer from: matthewlucas8613

1. The ROI for Osaka and Yokahama is 24% and 16 % respectively

2. The residual income for Osaka and Yokahama is $245,000 and $280,000 respectively.

3. Yokohama is not better managed.

Explanation:

1. The formula to compute Return on Investment (ROI) is shown below:

= Net operating income ÷ Average operating assets

For Osaka

= $588,000 ÷ $2,450,000

= 24%

For Yokahama

= $2,240,000 ÷ $14,000,000

= 16%

Hence, The ROI for Osaka and Yokahama is 24% and 16 % respectively

2. The computation of minimum required rate of return and residual income is shown below:

Minimum required rate of return = 14% of average operating assets

And, residual income = Net operating income - Minimum required rate of return

So,

For Osaka

The Minimum required rate of return = 14 % × $2,450,000 = $343,000

And, residual income = $588,000 - $343,000 = $245,000

For Yokohama

The Minimum required rate of return = 14 % × $14,000,000 = $1,960,000

And, residual income = $2,240,000 - $1,960,000 = $280,000

Hence, the residual income for Osaka and Yokahama is $245,000 and $280,000 respectively.

3. The greater amount of residual income doesn't mean that Yokohama is better managed. Here, the ROI and Net operating assets is to be considered for better managing.

So, Yokohama is not better managed.

Answer from: Quest

the correct answer option is b. a single paragraph.

explanation:

when you are thinking about paragraph topics, you should always choose a subject that can be adequately addressed in a single paragraph.

a paragraph is a piece of writing consisting of a few sentences that deal with a single theme. it has only a single idea that the paragraph revolves around and talks about.

so a paragraph topic must be chosen wisely where a single idea can be communicated in a single paragraph.

Answer from: Quest

The advantage of administering personality tests on employees is that it will allow the employer to know the mindset and personality of the employee. this will allow the employer to at least have an idea as to how the employee works and how his attitude in the workplace. the disadvantage is that it may make the employee a little anxious as to whether he would meet the personality requirements of the employer and whether he would be able to retain the job or not.

Another question on Business

Business, 22.06.2019 17:40

Take it all away has a cost of equity of 11.11 percent, a pretax cost of debt of 5.36 percent, and a tax rate of 40 percent. the company's capital structure consists of 67 percent debt on a book value basis, but debt is 33 percent of the company's value on a market value basis. what is the company's wacc

Answers: 2

Answer

Business, 23.06.2019 03:20

Suppose that fixed costs for a firm in the automobile industry (start-up costs of factories, capital equipment, and so on) are $5 billion and that variable costs are equal to $17,000 per finished automobile. because more firms increase competition in the market, the market price falls as more firms enter an automobile market, or specifically, , where n represents the number of firms in a market. assume that the initial size of the u.s. and the european automobile markets are 300 million and 533 million people, respectively.a. calculate the equilibrium number of firms in the u.s. and european automobile markets without trade.b. what is the equilibrium price of automobiles in the united states and europe if the automobile industry is closed to foreign trade? c. now suppose that the united states decides on free trade in automobiles with europe. the trade agreement with the europeans adds 533 million consumers to the automobile market, in addition to the 300 million in the united states. how many automobile firms will there be in the united states and europe combined? what will be the new equilibrium price of automobiles? d. why are prices in the united states different in (c) and (b)? are consumers better off with free trade? in what ways?

Answers: 1

Answer

Business, 23.06.2019 11:10

If canada has a surplus of paper products produced but its consumers demand more cleaning solutions, and the us has an abundance of cleaning solutions but consumers are demanding more paper products, how would trade benefit both countries? trade would assist both countries by creating excess demand. trade would assist both countries by strengthening their natural resources. trade would assist both countries to both reduce excess supply and satisfy market demand.

Answers: 3

Answer

Business, 23.06.2019 22:30

Clearcall corporation makes phones, which are sold to consumers by defdeals stores. erna files a product liability suit against clearcall, alleging a design defect. in deciding whether to hold clearcall liable, the court may consider a. defdeals' method of accounting. b. erna's intended use for the phone. c. clearcall's quality control efforts. d. an available alternative design

Answers: 1

Answer

You know the right answer?

Meiji isetan corp. of japan has two regional divisions with headquarters in osaka and yokohama. sele...

Questions