South Carolina Produce has two decentralized divisions (Peaches and Onions) that have decision making responsibility...

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Accounting

South Carolina Produce has two decentralized divisions (Peaches and Onions) that have decision making responsibility over the amount of resources invested in their divisions. Recent financial extracts for both divisions are presented below:

Peaches Onions

Fixed assets, gross $4,500 $7,200

Accumulated depreciation $2,700 $2,160

Other assets$900 $1,350

Sales $12,150 $12,960

Net income after tax* $1,330 $1,810

Average age of fixed assets (years) 15 5

*Net income is after tax but before interest

What is the Return on Investment (ROI) for each division?

Based on the DuPont model covered in our lecture, what are two possible strategies for improving the Return on Investment (ROI)?

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