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Divisional income statements and return on investment analysis The Crunchy Granola Company is a diversified food company that specializes in all natural foods. The company
Divisional income statements and return on investment analysis The Crunchy Granola Company is a diversified food company that specializes in all natural foods. The company has three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June Y are as follows: Line Item Description Cereal Division Snack Cake Division Retail Bakeries Division Sales $ $ $ Cost of goods sold Operating expenses Invested assets The management of The Crunchy Granola Company is evaluating each division as a basis for planning a future expansion of operations. Prepare condensed divisional income statements for the three divisions, assuming that there were no support department allocations. Using the DuPont formula for return on investment, compute the profit margin, investment turnover, and return on investment for each division. If required, round your answers to one decimal place.
Divisional income statements and return on investment analysis
The Crunchy Granola Company is a diversified food company that specializes in all natural foods. The company has three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June Y are as follows:
Line Item Description Cereal
Division Snack Cake
Division Retail
Bakeries Division
Sales $ $ $
Cost of goods sold
Operating expenses
Invested assets
The management of The Crunchy Granola Company is evaluating each division as a basis for planning a future expansion of operations.
Prepare condensed divisional income statements for the three divisions, assuming that there were no support department allocations.
Using the DuPont formula for return on investment, compute the profit margin, investment turnover, and return on investment for each division. If required, round your answers to one decimal place.
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