The three divisions of Hollywood Media Enterprises are Broadcasting, Music, and Publications. The divisions are structured as investment centers. The following responsibility reports were prepared for the three divisions for the prior year:

1. Which division is making the best use of invested assets and thus should be given priority for future capital investments?
2. Assuming that the minimum acceptable rate of return on new projects is 10% would all investments that produce a return in excess of 10% be accepted by the divisions?
3. Can you identify opportunities for improving the company€™s financialperformance?

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Broadcasting Music Publications Revenues Operating expenses Income from operations before S600,000 240,000 $1,400,000 800,000 $500,000 100,000 service department charges Promotion Legal S 360,000 $ 600,000 $400,000 Service department charges 100,000 50,000 S 150,000 S 210,000 $1,500,000 $176,000 $ 200,000 40,000 $ 240,000 $ 360,000 $3,000,000 80,000 Income from operations Invested assets $256,000 $144,000 $900,000