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PLEASE SHOW ALL CALCULATIONS INVOLVED thank you in advance CP 8-3 Evaluating divisional performance The three divisions of Tasty Goodness Foods are Snack Goods, Cereal,
PLEASE SHOW ALL CALCULATIONS INVOLVED thank you in advance
CP 8-3 Evaluating divisional performance The three divisions of Tasty Goodness Foods are Snack Goods, Cereal, and Frozen Foods. The divisions are structured as investment centers. The following responsibility reports were prepared for the three divisions for the prior year: Cereal Frozen Foods Snack Goods 1,039,500 760,500 1,800,000 $2,100,000 ,65o.000 Revenues Operating expenses Income from operations before 872,000 668,000 $1,228,000 982,000 250,000 500,000 S 390,000 service department charges Service department charges: Promotion 114,500 S 364,500 S396,000 $1,800,000 196,000 S 703,00586,000 S396,000 1,70,000$1,500,000 tegal 203,000 SS25,000 Income from operations Invested assets 1. Which division is making the best use of invested assets and thus should be given priority for future capital investments? acceptable rate of return on new projects is a return in excess of 15% be accepted by the 2. Assuming that the minimum 1596, would all investments that produce divisions? Can you identify opportunities for improving the company's financial performanceiStep by Step Solution
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