6. RETURN ON INVESTMENT VS RESIDUAL INCOME AND TRANSFER PRICING (20 Marks) Part A The Excellent Motor Company produces affordable car. Its newest division, Electric Car, manufactures and sells a single product - Excellent Green. The demand for Excellent Green is relatively insensitive to price changes. The following data are available for Electric Car, which is an investment centre for Excellent Motor: Total annual fixed cost: $39,375,000 Variable per electric car: $5000 Number of electric cars sold each year 6000 Average operating assets invested in the division $10,500,000 Required 1. Calculate the Excellent Motor Company ROI if the selling price of Electric car is $12000 per car. (4 Marks)