=+The Basketball Division of RealSports manufactures and sells basketballs. Assume production equals sales. Budgeted data for 2014 are:

Current assets $400 000 Long-term assets 600 000 Total assets $1 000 000 Production output 200 000 basketballs Target ROI (Operating profit ÷ Total assets) 30%

Fixed costs $400 000 Variable cost $4 per basketball Required 1 Calculate the minimum selling price per basketball necessary to achieve the target ROI of 30%.