1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
rosijanka [135]
3 years ago
13

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

ns follow: Division Osaka Yokohama Sales $ 10,200,000 $ 32,000,000 Net operating income $ 816,000 $ 3,200,000 Average operating assets $ 2,550,000 $ 16,000,000 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 17%. Compute the residual income for each division. 3. Is Yokohama’s greater amount of residual income an indication that it is better managed?
Business
1 answer:
zaharov [31]3 years ago
3 0

Answer: See explanation

Explanation:

1. The return on investment for Osaka will be:

= (816000/10200000) × (10200000 × 2550000)

= 32%

The return on investment for Yokohama will be:

= (3200000/32000000) × (32000000/16000000)

= 20%

2. See attachment

3. Yokohama’s greater amount of residual income is not an indication that it is better managed. Since Yokohama Division is bigger than Osaka Division, it's expected that Yokohama will have a greater residual amount.

You might be interested in
A quantity of inventory that provides protection against lost sales caused by unfulfilled demands from customers is called:_____
s2008m [1.1K]

Answer:

e) Safety stock.

Explanation:

The term that describes this form of safety-net for companies is called safety stock. Companies tend to have this in order to be able to maintain their business flow as efficiently as possible in case there are unforeseen increases in demand. Otherwise, if demand drastically increases and they do not have this safety stock the company will run out of stock immediately and lose out on sales as they wait for more stock to arrive, which can also cause that stock to sell out immediately due to the backed-up demand, which can lead to the business buying backed up for months.

5 0
3 years ago
Jacobs Company has inventory of 15 units at a cost of $12 each on June 1. On June 5, Jacobs purchased 10 units at $13 per unit.
vekshin1

Answer:

$210

Explanation:

Date    Description   Units  Price  Total Balance

1-Jun    Opening        15   $12   $180   $180  

5-Jun    Purchase      10      $13     $130          $310  

12-Jun   Purchase      20     $14     $280         $590  

17-Jun   *Sale             -30               -$380        $210  

*Working

Sale

Date          Units   Price     Total

17-Jun       -15 $12   $(180)  

                -10   $13   $(130)  

                -5   $14   $(70)  

Total Sale -30           -$380  

So, the correct answer is $210.

3 0
4 years ago
What is first step in developing a knowledge management system
Elza [17]
The first step is determining what knowledge is most important. the control function involves measuring performance relative to the planned objectives and standards, rewarding people for well work done, and then taking corrective action when necessary.

hope this helps :)
5 0
4 years ago
Who is the leader of Braidy
sineoko [7]

Answer:

The answer should be "President Tom Modrowski?"

Explanation:

Sorry if I am wrong

8 0
3 years ago
starbucks repurchased over 1.4 billion of its common stock in 2015. did this repurchase increase or decrease roe
IRINA_888 [86]
Starbucks reports net income for 2015 of $2,558.4 million. Its stockholders' equity is $5,716 million and $6,262 million for 2014 and 2015, respectively. a. Compute its return on equity for 2015. Round answer to one decimal place (ex: 0.2345 = 23.5%) Answer % b. Starbucks repurchased over $1.4 billion of its common stock in 2015. How did this repurchase affect Starbucks' ROE? ROE usually decreases since the repurchase of shares reduces the denominator (avg. stockholders' equity). ROE usually increases since the repurchase of shares reduces the denominator (avg. stockholders' equity). ROE usually increases since the repurchase of shares increases the denominator (avg. stockholders' equity). ROE usually decreases since the repurchase of shares increases the denominator (avg. stockholders' equity). c. Why do you think a company like Starbucks repurchases its own stock? Companies repurchase their own stock if they feel it overvalued by the market. Companies repurchase their own stock if they feel it undervalued by the market.
8 0
3 years ago
Other questions:
  • Abel, a Certified Fraud Examiner (CFE), conducted an interview of Baker, the controller of the ABC Company. Abel asked the follo
    14·1 answer
  • Alyssa owns and operates a store in a country experiencing a high rate of inflation. In order to prevent the value of money in h
    12·1 answer
  • While Eric is working in the fast-food restaurant, he does not want people to think of him as a "loser in a dead-end job." He wa
    12·1 answer
  • What is the Weberian Paradox?
    14·1 answer
  • Support functions manage and improve the efficiency of an organization's conversion processes so that more value is created.
    15·1 answer
  • A publishing firm believes in providing continuous feedback to employees regarding their work. Newly hired employees are assigne
    8·2 answers
  • Sarah just made a purchase on an online shopping site (such as amazon) and completed the checkout process by paying with her cre
    15·1 answer
  • When an incident occurs and relevant agencies or departments are dispatched to the scene, the lead agency assumes Incident Comma
    8·2 answers
  • Poeple who own operate and take on the financial risk of operating a business are called?​
    14·1 answer
  • Why should a firm stop producing when its marginal revenue is less than its average variable cost?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!