Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

of at least 22% ) is answer to the nearest cent.) The minimum selling price that Golf Technology Division per AccuDriver (if the company's required

of at least

22%

) is\ answer to the nearest cent.)\ The minimum selling price that Golf Technology Division per AccuDriver (if the company's required rate of return is

20%

) is\ Data table\ Total annual fixed costs\ Variable cost per AccuDriver\ Number of AccuDrivers sold each year\ Average operating assets invested in the division\

$33,000,000

\

$300

\ 175,000\

$54,000,000
image text in transcribed
The New Athletics Company produces a wide variety of sports equipment. Its newest division, Golf Technology, manufactures and sells a single productAccuDriver, a golf demand for AccuDriver is relatively insensitive to price changes. The following data are available for Golf Technology, which is an investment center for New Athletics: (Click the icon to view the data.) Requirements Read the 1. Compute Golf Technology's ROI if the selling price of AccuDrivers is $520 per club. Requirement 1. Compute Golf Technology's ROI if the selling price of AccuDrivers is $520 per club. Determine the formula used to calculate ROI, then calculate the ROI for Golf Technology. (Enter the ROI as a percentage, rounded to the nearest hundredth percent, X.XX\%. ROI===% 2. If management requires an ROI of at least 22% from the division, what is the minimum selling price that the Golf Technology Division should charge per AccuDriver club? 3. Assume that New Athletics judges the performance of its investment centers on the basis of RI rather than ROI. What is the minimum selling price that Golf Technology should charge per AccuDriver if the company's required rate of return is 20% ? Requirement 2. If management requires an ROI of at least 22% from the division, what is the minimum selling price that the Golf Technology Division should charge per Acc Select the formula that would be used in your calculation to determine the minimum selling price. [Units sold (Selling price per unit - Variable cost per unit)] - Fixed costs = ROI Investment (Round your answer to the nearest cent.) The minimum selling price that Golf Technology Division should charge per AccuDriver club (if management requires an ROI of at least 22% ) is answer to the nearest cent.) The minimum selling price that Golf Technology Division per AccuDriver (if the company's required rate of return is 20% ) is Data table

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Money Markets Handbook A Practitioners Guide

Authors: Moorad Choudhry

1st Edition

0470821507, 978-0470821503

More Books

Students also viewed these Finance questions