Exercise $11-6($Algo$)$ Contrasting Return on Investment $($ROI$)$ and Residual Income $[$LO$11-1,$ LO$11-2]$

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

follow:

Required:

For each division, compute the return on investment $($ROI$).$

Assume that the company evaluates performance using residual income and that the minimum required rate of return for any

division is $18\%.$ Compute the residual income for each division.

Complete this question by entering your answers in the tabs below.

For each division, compute the return on investment $($ROI$).$