Based on the given entries, the condensed divisional income statements are:
Cereal Division Snack Cake Retail Bakeries
Sales 25,000,000 8,000,000 9,750,000
Cost of Goods <u> (16,670,000) (5,575,000) (6,795,000)</u>
Sold
Gross Profit 8,330,000 2,425,000 2,955,000
Operating Expenses <u> (7,330,000) (1,945,000) (2,272,500)</u>
Operating income <u> (1,000,000) (480,000) (682,500) </u>
The profit margins, Investment turnover, and ROI.
Cereal Division Snack Cake Retail Bakeries
Profit Margin 4 6 7
Investment Turnover 2.5 2 12
ROI 7 1.5 10.5
The management should go with Snack Cake as it has the highest Profit Margin.
<h3>What are the matrics and ratios for Crunchy Granola Company?</h3>
The condensed income statements will show all the divisions and their operating incomes in one statement as shown above.
The profit margin can be found as:
= Operating income / Sales x 100
The Return on Investment (ROI) is:
= Operating income / Invested assets x 100
Investment turnover can be found as:
= Sales / Invested assets x 100
Find out more on Return on Investment at brainly.com/question/26445145.
