LaserLife Sdn Bhd manufactures printer cartridge for its customers. Management of LaserLife has decided to nvest in a division to produce specialized cartridge to cater to a new niche market segment. Average operating assets invested amounted to RM1,600,000 and based on market studies, pricing for the new cartridge was set at RM350 per unit. Management is considering further price reductions to capture additional market share. Production per annum came to 5,000 units, incurring a total cost of RM1,350,000, of which RM600,000 is fixed, regardless of production levels. Laserlife has managed to secure contracts to sell its entire annual production output from the new division Management is awaiting to know the performance of the new division and the management accountant has collected data on the return on investment (ROI) as well as residual income (RI) for the new division to present to management. The average return on investment (ROI) for firms within the industry has historically been around 9% Required: Show all calculations) a) Using ROI, evaluate the performance of the new division, relative to industry standards. (5 marks) b) Calculate the RI for the new division, assuming a required rate of return by investors of 20%. (3 marks) c) Calculate the maximum price reduction allowed in order to not fall below the industry ROI of 19% (4 marks) d) Explain each of the four levers of control and why does a company need to implement more than a diagnostic control system (8 marks) Total: 20 marks)