To begin with, in order to compare to different variables that are in different measures the correct way to proceed is to put them in the same measure so therefore they will be comparable with each other. Once said that, in this case the person should put the psychological benefits in economics benefits as it is the other variable and in order to do that the person should think of what aspects of his productivity would increase if he takes the vacations and gains the psychological benefits. For example, after getting back from the holidays he may feel himself less stress and more relax and therefore that he may be able to either do more job, more studies or more excercises and all that can impact in an economic way.

7 0

3 years ago

an Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions f

irinina [24]

Answer:

Part 1 - ROI

In terms of Margin :

Division Osaka = 20 %

Division Yokohama = 14 %

In terms of Turnover :

Division Osaka = 400 %

Division Yokohama = 200 %

Part 2 - Residual Income

Division Osaka = $182,000

Division Yokohama = $210,000

Explanation:

Return on investment (ROI) = Divisional Profit Contribution / Assets Employed in the division x 100

In terms of Margin :

Division Osaka = $ 455,000 / $ 2,275,000 x 100 = 20 %

Division Yokohama = $ 1,470,000/ $ 10,500,000 x 100 = 14 %

In terms of Turnover :

Division Osaka = $ 9,100,000 / $ 2,275,000 x 100 = 400 %

Division Yokohama = $ 21,000,000/ $ 10,500,000 x 100 = 200 %

Residual income = Controllable Profit - Cost of Capital Charge on Controllable Investment

Therefore,

Division Osaka = $ 455,000 - $ 2,275,000 x 12 % = $182,000

Division Yokohama = $ 1,470,000 - $ 10,500,000 x 12 % = $210,000

8 0

3 years ago