22.2 Video World owns and operates a national chain of video game arcades. Indicate whether VideoWorld would evaluate each of the following as an investment center, a profit center (other than aninvestment center), or a cost center. Briefly explain the reason for your answer.a.An individual video arcade within a chain of video arcades.b.A snack bar within one of the company's arcades.A particular video game within one of the company's arcades.d. The security officers at each arcade location.с.Iku oolan

a. An individual video arcade within a chain of video arcades will be evaluated as an investment center because each arcade will generate a profit and will have an identifiable asset base. b. A snack bar within one of the company’s arcades will most likely be evaluated as a profit center. It is unlikely that a snack bar will be evaluated as an investment center because it will share common assets with other profit centers in each arcade.c. A particular game within one of the company’s arcades will most likely be evaluated as a profit center. However, if the company’s investment in each game is viewed as its asset base (and the common assets it shares with other games within the arcade are ignored), the company could consider each game an investment center. d. The security for each arcade will most likely be evaluated as a cost center because security officers contribute no profit to the company.