Business, 05.06.2020 16:59, Sprout7430

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, 2017, 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 serrvice department charges
2. Using the DuPont formula for rate of return on investment, compute the profit margin, investment turnover, and rate of return on investment for each division. If required, round your final answer 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?

Answers: 3

Show answers

Other questions on the subject: Business

Business, 21.06.2019 18:10, MagicDragon4734

Panera bread is a chain of cafes serving sandwiches, soups, and freshly baked breads. the company began in 1981 with stores primarily located along the east coast of the united states. since then, the firm has expanded to over 1,300 locations throughout the united states and canada. the firm has strong earnings and has been designated by business week as a "significant growth company." panera bread executives are considering the idea of expanding globally by opening cafes in asia through a franchising strategy. which of the following, if true, supports the argument that panera bread should expand into asia through franchising? a: the panera bread menu changes rapidly, and each cafe's artisan bread bakers receive regular training on new recipes. b: panera bread executives want fast access to the asian market without a significant investment of capital. c: panera bread executives want to test the asian market with a short-term commitment that allows them to make quick profits. d: the panera bread mission is to make excellent bread available to customers around the world.

Answers: 2

continue

Business, 22.06.2019 21:00, legazzz

Ryan terlecki organized a new internet company, capuniverse, inc. the company specializes in baseball-type caps with logos printed on them. ryan, who is never without a cap, believes that his target market is college and high school students. you have been hired to record the transactions occurring in the first two weeks of operations.

Answers: 1

continue

Business, 22.06.2019 21:20, haileymaree

1. what are the unique operational challenges to delivering fresh meals? 2. why is speed of delivery so important for delivered meals? what variety of options contribute to this performance metric? 3. how could operations management concepts be utilized to improve the performance of freshly? 4. what are your typical product delivery times? what would be required to speed these up? 5. what are your delivery batch quantities? how could you reduce batch size and reduce delivery cost simultaneously using operations management concepts?

Answers: 2

continue

Business, 22.06.2019 23:30, glissman8459

What is the difference between career options in the law enforcement pathway and career options in the correction services pathway?

Answers: 1

continue

Do you know the correct answer?

The Crunchy Granola Company is a diversified food company that specializes in all natural foods. The...