Minden Manufacturing Company Managerial Accounting

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:

  1. Calculate profit margin for each division.
  2. Calculate investment turnover for each division.
  3. Calculate Return on Investment using the DuPont Formula.
  4. Calculate residual income for each division.

You must show all your work for credit.

 

Posted in Uncategorized