Key information for the Peoria Division (PD) of Barrington Industries for 2014 follows. PD' managers are evaluated and rewarded on the basis of ROI defined as operating income divided by total assets. Industries expects its divisions to increase ROI cash year. Next year, 2015, appears to be a difficult year for PD, PD had planned a new investment to improve quality but, in view of for economic conditions, has postponed the investment. ROI for 2015 was certain to decrease if PD has made the investment. Management is now considering ways to meet its target ROI of 20% for next year. It anticipates revenues to be steady at $15,000,000 in 2015. Required: Calculate PD's return on sales (ROS) and ROI for 2014. By how much would PD need to cut costs in 2015 to achieve its target ROI of 20%, assuming no change in total assets between 2014 and 2015? By how much would PD need to decrease total assets in 2015 to achieve its target ROI of 20%, assuming no change in operating income between 2014 and 2015? Calculate PD's RI in 2014 assuming a required rate of return on investment of 15%. PD defines its investment as total assets. PD wants to increase RI by 50% in 2015. Assuming it could cut costs by $45,000 in 2015, by how much would PD need to decrease total assets in 2015? Explain the three steps required to design and adopt accounting-based performance measures