Calculate profit margin for each division. Calculate investment turnover for each division. Calculate Return on Investment using the DuPont Formula.

Margin & Investment Turnover Calculation
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.

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