What term is used to identify weather conditions at a particular location over a long period of time?

Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisio

disa [49]

Answer:

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.

3 0

3 years ago

Charlie Corporation is considering buying a new donut maker. This machine will replace an old donut maker that still has a usefu

mariarad [96]

Answer:

The incremental annual net cash inflows provided by the new machine would be $2,525.

Explanation:

In order to calculate the incremental annual net cash inflows provided by the new machine we would have to use the following formula:

incremental annual net cash inflows=saving in annual operating cost+contribution earned on additional sales

=( $4,125-$3,730)+(21,300×$0.10)

=$395+$2,130

=$2,525

Hence, The incremental annual net cash inflows provided by the new machine would be $2,525.

3 0

3 years ago

What is a risk assessment?

natta225 [31]

Answer:

Risk assessment is one of the steps used in a risk management process. The risk R is assessed by measuring the two parameters that determine it, the magnitude of the possible loss or damage L, and the probability p that said loss or damage will occur. According to ISO 31000, the Risk Assessment actually refers to the Risk Assessment.

Risk assessment is probably the most important step in a risk management process, and also the most difficult and most likely to make mistakes. Once the risks have been identified and evaluated, subsequent steps to prevent them from occurring, protect against them or mitigate their consequences are much more programmatic.

Part of the difficulty in risk management is that measuring the two parameters that determine risk is very difficult, which is why it is said to be a subjective process. The uncertainty associated with the measurement of each of the two parameters (L and p) is usually large. Risk management would also be simpler if it were possible to have a single metric that reflects all available information in the measurement. However, this is not possible, since it is about measuring two quantities. A risk with great magnitude of loss or damage and a low probability of occurrence must be treated differently than a risk with a reduced magnitude of loss or damage and a high probability of occurrence. In theory the two indicated risks have an identical priority for their treatment, but in practice it is quite difficult to manage them when faced with limitations in the available resources, especially time to carry out the risk management process.

3 0

3 years ago

Aiden and Priya believe automation is necessary so Bergman’s can be ______, not ______.

denpristay [2]

Answer:

Bergman’s can be more efficient, not cumbersome to consumers

Explanation:

Priya acknowledges that competitors are changing its purchase method to an automated one. She sees the trend in consumer behavior and establishes that Bergman has to adopt this new method to be up to date in regards to market best practices.

Therefore, changing to an automated sales, Pryia believes that Bergman will be more modern, efficient and faster.

5 0

3 years ago

Country A and country B produce the same consumption goods and capital goods and currently have identical production possibiliti

yuradex [85]

it should be yes since it come out true

3 0

3 years ago