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CP 8-3 Evaluating divisional performance The three divisions of Tasty Goodness Foods are Snack Goods, Cereal, and Frozen The divisions are structu were prepared for
CP 8-3 Evaluating divisional performance The three divisions of Tasty Goodness Foods are Snack Goods, Cereal, and Frozen The divisions are structu were prepared for the three divisions for the prior year: Foods. red as investment centers. The following responsibility reports Cereal Frozen Foods Snack Goods $1,800,000 ,039,500 $2,100,000 $1,650,000 668,000 Revenues Operating expenses Income from operations before 872,000 S 760,500 S1.22B,000$ 982.000 service department charges Service department charges: S 250,000 114,500 5 364,500 S 396,000 $1,800,000 S 500,000S 390,000 196,000 000 $ 586,000 S396,000 $1,750,000 $1,500,000 Promotion Legal 203,000 S 703 SS25,000 Irncome from operatlons Invested assets be given 1. Which division is making the best use of invested assets and thus should priority for future capital investments? 2. Assuming that the minimum acceptable rate of return on new projects is 5% be accepted by the 15%, would all investments that produce a return in excess of 1 divisions? 3. Can you identify opportunities for improving the company's financial performance
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