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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 investmen centers,
The Crunchy Granola Company is a diversified food company that specializes in all natural foods. The company has three operating divisions organized as investmen centers, Condensed data taken from the records of the three divisions for the year ended June 30, 2017, are as follows: Retail Bakeries Division Sales Cereal Division $25,000,000 16,670,000 7,330,000 10,000,000 $9.750,000 Cost of goods sold Operating expenses Invested assets Snack Cake Division $8,000,000 5,575,000 1,945,000 4,000,000 6,795,000 2,272,500 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: The management of The Crunchy Granola Company is evaluating each division as a basis for planning a future expansion operations Required: 1. Prepare condensed divisional income statements for the three divisions, assuming that there were no support department a location. The Crunchy Granola Company Divisional Income Statements For the Year Ended June 30, 2017 Retail Cereal Snack Cake Bakeries Division Division Division Sales Cost of goods sold Gross pront Operating expenses Operating income 2. Using the DuPont formula for retum on investment, compute the profit margin, investment turnover, and return on investment for each divisionIf recurred, round your answers to one decimal place Profit Margin Division ROI Investment Turnover Cereal Division Snack Cake Division Division first Retail Bakeries Division ith limited funds for expansion, management should consider an expansion of the
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