records of the three divisions for the year ended June Y are as follows:
The management of The Crunchy Granola Company is evaluating each division as a basis for planning a future expansion of operations.
Required:
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
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.
When faced with limited funds for expansion, management should consider an expansion of the Snack Cake Division first.
