follows: The Crunchy Granola Company is a diversified food company that specializes in all natural food PR 24-3A Divisional income statements and return on investment analysis The company has three operating divisions organized as investment centers. Condensed data til from the records of the three divisions for the year ended June 30, 2017, are as The management of The Crunchy Granola Company is evaluating each division as a basis for 1. Prepare condensed divisional income statements for the three divisions, assuming that there of the Cereal Division ROI, 10.096 Cereal Division TEMPLATE Sales $25,000,000 Cost of goods sold 16,670,000 Operating expenses 7,330,000 Invested assets 10,000,000 planning a future expansion of operations. Instructions Snack Cake Division $8,000,000 5,575,000 1,945,000 4,000,000 Retail Bakeries Division $9,750,000 6,795,000 2,272,500 6,500,000 were no support department allocations. 1245 Chapter 24 Evaluating Decentralized Operations 2. Using the DuPont formula for return on investment, compute the profit margin, investment turnover, and return on investment for each division, Round percentages and the investment turnover to one decimal place. 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 (2)? Explain. PR 24.4A 13 The Crunchy Granola Company Divisional Income Statements For the Year Ended June 30, 2047 Snack Cereal Cake Division Division Rotall Bakeries Division Sales Cost of goods sold Gross profit Operating expenses Operating income Retum on Investment (ROI) Profit Margin xInvestment Turnover 141. 15 16 17 18 19 20 21 22 23 24 25 26 27 2 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Retum on Investment (ROI) Operating Income Sales Sales Invested Assets Cereal Division: ROI Snack Cake Division: ROL Retail Bakeries Division: ROL 46 Pr. 24(10)-3A B D N E F G L H M [Key essay answer here)