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1. For 2014, Division C of Deerfield Company reported operating assets of $8,800,000, revenues of $6,600,000, and operating expenses of $5,760,000. The company has established
1. For 2014, Division C of Deerfield Company reported operating assets of $8,800,000, revenues of $6,600,000, and operating expenses of $5,760,000. The company has established a target return on investment (ROI) of 10% for the division. Required: 1) Calculate the 2014 ROI for the division. Did the division achieve its target ROI for the year? 2) For 2015, Division C managers expect that its operating assets will stay at about the same level as for 2014. Variable expenses for 2014 were $3,960,000, and the remaining expenses were fixed. The managers expect that the contribution margin ratio for 2015 will be the same as for 2014 and that the amount of fixed expenses will not change. To what level must sales increase in 2015 to achieve the target ROI
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