Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow (in millions of yen, denoted by ¥): Division
Osaka Yokohama
Sales
¥3,000,000 ¥9,000,000
Net operating income
¥210,000 ¥720,000
Average operating assets ¥1,000,000 ¥4,000,000
Required:
1.For each division, compute the return on investment (ROI) in terms of margin and turnover. Where necessary, carry computations to two dccimal places.
2.Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 15%. Compute the residual income for each division.
3.Is Yokohama’s greater amount of residual income an indication that it is better managed? Explain.

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.