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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.

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, 20Y7, are as follows:

Cereal Division Snack Cake Division Retail Bakeries Division
Sales $25,000,000 $8,000,000 $9,750,000
Cost of goods sold 16,670,000 5,575,000 6,795,000
Operating expenses 7,330,000 1,945,000 2,272,500
Invested assets 10,000,000 4,000,000 6,500,000

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 divisions, assuming that there were no support department allocations.

The Crunchy Granola Company
Divisional Income Statements
For the Year Ended June 30, 20Y7
Cereal Division Snack Cake Division Retail Bakeries Division
Sales $fill in the blank b73f87f4b03107a_1 $fill in the blank b73f87f4b03107a_2 $fill in the blank b73f87f4b03107a_3
Cost of goods sold fill in the blank b73f87f4b03107a_4 fill in the blank b73f87f4b03107a_5 fill in the blank b73f87f4b03107a_6
Gross profit $fill in the blank b73f87f4b03107a_7 $fill in the blank b73f87f4b03107a_8 $fill in the blank b73f87f4b03107a_9
Operating expenses fill in the blank b73f87f4b03107a_10 fill in the blank b73f87f4b03107a_11 fill in the blank b73f87f4b03107a_12
Operating income $fill in the blank b73f87f4b03107a_13 $fill in the blank b73f87f4b03107a_14 $fill in the blank b73f87f4b03107a_15

2. 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.

Division Profit Margin Investment Turnover ROI
Cereal Division fill in the blank 69559ef57fbdf8c_1 % fill in the blank 69559ef57fbdf8c_2 fill in the blank 69559ef57fbdf8c_3 %
Snack Cake Division fill in the blank 69559ef57fbdf8c_4 % fill in the blank 69559ef57fbdf8c_5 fill in the blank 69559ef57fbdf8c_6 %
Retail Bakeries Division fill in the blank 69559ef57fbdf8c_7 % fill in the blank 69559ef57fbdf8c_8 fill in the blank 69559ef57fbdf8c_9 %

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