The three divisions of Monstore 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:

1. Which division is making the best use of invested assets and thus should be given priority for future capital investments?2. Assuming that the minimum acceptable rate of return on new projects is 12%, would all investments that produce a return in excess of 12% be accepted by the divisions?3. Can you identify opportunities for improving the company's financial performance?

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Snack Goods Frozen Foods Cereal $ 2,400,000 1,179,000 $1,500,000 684,600 Revenues $1,350,000 483,000 Operating expenses Income from operations before service department charges Service department charges: $ 815,400 $ 1,221,000 $ 867,000 Promotion Legal $ 415,000 $ 210,000 $ 325,000 164,000 $ 489,000 $ 378,000 86,000 $ 501,000 $ 720,000 $ 305,400 $ 510,000 Income from operations Invested assets $2,500,000 $ 4,800,000 $1,800,000