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Divisional Income Statements Final Questions Instructions The Crunchy Granola Company is a diversified food company that specializes in all natural foods. The company has three

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Divisional Income Statements Final Questions Instructions 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 30, 2017 are as follows Sales Cereal Division $27,100,000 16,690,000 8.784.000 9,033,333 Snack Cake Division $8,040,000 5,575,000 1.741,400 2,010,000 Retail Bakeries Division $9,750,000 6,710,000 2.260,000 3,900,000 Operating expenses The management of The Crunchy Granola Company is evaluating each division as a basis for planning a future expansion of operations Required: 1. Prepare condensed divisional income statements for the three divisione assuming that there were no se deoartments 2. Using the DuPont form for return on investment compute the profit margin investment twower and return on investment for each division if required, round your final answers to one decimal place 3. If available funds permt the expansion of operations of only one division, which of the divisions would you recommend for expansion based on parts (1) and (2) Divisional Income Statements 1. Prepare condensed divisional income statements for the three divisions, assuming that there were no service department charges The Crunchy Granola Company Divisional Income Statements For the Year Ended June 30, 2017 Cereal Division Snack Cake Division Retail Bakeries Division 2 Sales 3 Cost of goods sold Gross profit 5 Operating expenses 6 Income from operations Instructions Divisional Income Statements Final Questions Final Questions required, round you 2. Using the DuPont formula for return on investment compute the profit margin investment turnover, and return on investment for each division final answers to one decimal place Division Profit Margin investment Turnover Cereale % Snack Cake D C Retail Bakeries 3. If available funds permit the expansion of operations of only one division, which of the divisions would you recommend for expansion based on parts (1) and Cereal Retail Bakeries Snack Cake

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