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: 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