The three divisions of Monster Foods are Snack Goods, Cereal, and Frozen Foods. 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 12%, would all investments that produce a return in excess of 12% be accepted by the divisions?
3. Can you identify opportunities for improving the company's financialperformance?

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Snack Goods Cereal Frozen Foods 875,000 175,000 Revenues 1,050,000 $2,450,000 1,400,000 420,000 630,000 175,000 Income from operations before service department charges 1,050,000 700,000 Service department charges: 350,000 308,000 140,000 448,000 252,000 1,260,000 Promotion Legal 87,500 70,000 Income from operations Invested assets 367,500 $2,100,000 420,000 630,000 $4,200,000