=+Next year, 2015, appears to be a difficult year for DD. DD had planned a new investment to improve quality but, in view of poor economic conditions, has postponed the investment. ROI for 2015 was certain to decrease if DD had made the investment.

Management is now considering ways to meet its target ROI of 14% for next year. It anticipates revenues to be steady at

$9000000 in 2015.

Required 1 Calculate DD’s return on sales (ROS) and ROI for 2014.