Minden Manufacturing Company Managerial Accounting
RITICAL THINKING ASSIGNMENT (100 points): Decentralized Operations
Complete the following questions using Microsoft Excel. No other submission format is allowed. Review the grading rubric to confirm you are meeting the assignment requirements. (All amounts in SAR unless otherwise indicated.)
Problem 1
Minden Manufacturing Company is evaluating the results of two divisions:
| Eastern | Western | |
|---|---|---|
| Division | Division | |
| Sales | 40,000,000 | 72,000,000 |
| Operating income | 4,000,000 | 6,480,000 |
| Total Assets | 20,000,000 | 18,000,000 |
Management expects each division to earn a 25% return on assets.
Required:
- Calculate profit margin for each division.
- Calculate investment turnover for each division.
- Calculate Return on Investment using the DuPont Formula.
- Calculate residual income for each division.
You must show all your work for credit.
