Choice Culinary Supply, Inc., sells restaurant equipment and supplies throughout most of the United States. Management is considering adding a gelato machine to its line of ice cream making machines. Management will negotiate the price of the gelato machine with its Italian manufacturer. Management of Choice Culinary Supply believes the gelato machines can be sold to its customers in the United States for $3,900 each. At that price, annual sales of the gelato machine should be 90 units. If the gelato machine is added to Choice Culinary Supply's product lines, the company will have to invest $54,000 in inventories and special warehouse fixtures. The variable cost of sellingthe gelato machines would be $355 per machine. If Choice Culinary Supply requires a 24% return on investment (ROI), what is the maximum amount the company would be willing to pay the Italian manufacturer for the gelato machines? 2. Management would like to know how the purchase price of the machines would affect Choice Culinary Supply's OI. Compute the ROI for purchase prices between $2,600 and $3,500 per machine. 3. After many hours of negotiations, management has concluded that the Italian manufacturer is unwilling to sell the gelato machine at a low enough price for Choice Culinary Supply to earn its 24% required RO. Apart from simply giving up on the idea of adding the gelato machine to Choice Culinary Supply's product lines, what could management do? Decrease selling price to generate enough additional unit sales to make gelato machine more profitable Improve selling process to decrease variable selling costs Increase the size of inventory to reduce costs Ascertain whether new warehouse fixtures are really necessary Incur additional selling expenses to reduce sales