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The Crunchy Granola Company is a diversified food company thatspecializes in all natural foods. The company has three operatingdivisions organized as investment centers. Condensed data takenfrom the records of the three divisions for the year ended June 30,20Y7, are as follows:Cereal DivisionSnack Cake DivisionRetail Bakeries DivisionSales$27,300,000$8,420,000$9,750,000Cost of goods sold16,660,0005,570,0006,735,000Operating expenses9,548,0002,260,6002,235,000Invested assets5,460,0002,105,0004,875,000The management of The Crunchy Granola Company is evaluating eachdivision as a basis for planning a future expansion ofoperations.Required:1.Prepare condensed divisional income statements for the threedivisions, assuming that there were no service departmentcharges.2.Using the DuPont formula for return on investment, compute theprofit margin, investment turnover, and return on investment foreach division. If required, round your final answers to one decimalplace.3.If available funds permit the expansion of operations of onlyone division, which of the divisions would you recommend forexpansion, based on parts (1) and (2)?Divisional Income StatementsShaded cells have feedback.1. Prepare condensed divisional income statements for the threedivisions, assuming that there were no service departmentcharges.The Crunchy Granola CompanyDivisional Income StatementsFor the Year Ended June 30, 20Y71Cereal DivisionSnack Cake DivisionRetail Bakeries Division2Sales3Cost of goods sold4Gross profit5Operating expenses6Income from operationsFinal Questions2. Using the DuPont formula for return on investment, computethe profit margin, investment turnover, and return on investmentfor each division. If required, round your final answers to onedecimal place.DivisionProfit MarginInvestment TurnoverROICereal%%Snack Cake%%Retail Bakeries%%