The Calculating Fashion Company Has Two Operating Divisions: North and South.The

Essay

The Calculating Fashion Company has two operating divisions: North and South.The following information was collected from its financial statements. $$\begin{array} { | l | r | r | } \hline & \text { North } & \text { South } \\\hline \text { Operating inc ome } & \$ 15,375 & \$ 9,160 \\\hline \text { Sales } & 90,100 & 128,445 \\\hline \text { Average operating assets } & 47,620 & 37,690 \\\hline\end{array}$$ Required:
The South Division has a goal to increase its ROI to 30% by the end of next year.Compute the increase (decrease)required in each of the following items in order to achieve this goal.a.Operating assets
b.Total costs
c.Sales