Home Run Sports (HRS) manufactures and sells baseballs. Assume production equals sales. Budget data for February 2013 are as follows: Current assets $ 400,000 Long-term assets 600.000 Total assets $1.000.000 Production output 200,000 baseballs per month Target Return on Investment (ROI) 30% Fixed costs $400,000 per month Variable cost $4 per baseball Required: 1. Compute the minimum selling price per baseball necessary to achieve the target ROI of 30%. 2. Using the selling price from requirement 1, separate the target ROI into its two components Margin and Turnover. 3. Compute the Residual (RI) of the HRS for February 2011, using the selling price from requirement 1. HRS uses a required rate of return of 12% on total assets when computing RI. 4. In addition to his salary, Saed Ahmed, the manager of HRS, receives 3% of the monthly RI as a bonus. Compute Saed's bonus. Why do you think Saed is rewarded using both salary and a performance-based bonus? Saed does not like bearing risk