1.How are standards and variances used in budgeting and budget analysis?

2.As future decision makers for companies, how do you foresee yourself using responsibility accounting?

The Crunchy Granola Company Divisional Income Statements For the Year Ended June 30, 2097 Snack Retail Cereal Cake Bakeries Division Division Division Sales $ 25,000,000 $ 8,000,000 $ 9,750,000 Cost of goods sold 16,670,000 5,575,000 6,795,000 Gross profit 8330000 $ 2,425,000 $ 2,955,000 Operating expenses 7,330,000 1,945,000 2,272,500 Income from operations $ 1,000,000 $ 480,000 $ 682,500 2 Return on Investment (ROI) = Profit Margin x Investment Turnover Return on Investment (ROI) Income from Operations Sales X Sales Invested Assets Cereal Division: ROI $1,000,000 $ 25,000,000 X $25,000,000 $10,000,000 10.0% Snack Cake Division: ROI $480,000 $8,000,000 $8,000,000 $4,000,000 12.0%% Retall Bakeries Division: ROI E $682,500 $9.750,000 $9,750,000 $6,500,000 ii 10.5%% 3 If funds are limited then i will suggest Snack Cake Division for expansion based on Retum on Investment