The three divisions of Dixie Foods are Cereal, Produce, and Snacks. 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. Determine the overall return on investment for Dixie Foods. Round to one decimal place.
4. Can you identify opportunities for improving Dixie Foods’ financialperformance?

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Produce $16,000,000 12,800,000 Cereal Revenues Operating expenses Income from operations before service $5400,000 4,200,000 Snacks $9,000,000 6,300,000 $1,200,000 3,200,000 $2,700,000 department charges Service department charges: Promotion 500,000 1,500,000 1,200,000 Legal 268,000 740,000 420,000 Income from operations Invested assets 768,000 5 432,000 4,500,000 2,240,000 5 960,000 8,000,000 $1,620,000 $1,080,000 $5,000,000