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Remote Machines Corp. (RMC) develops heavy-duty machinery that can be operated remotely. RMC operations are segregated into three industries: roadwork, mining, and reforestation. Each industry branch shares the services of one technology department, which is a cost centre. RMO has an annual innovation competition, and the industry branches commonly compete against each other to come up with the most innovative machinery so that the technology department will want to work with them first before moving on to the other branches. As part of the innovation competition, branch managers are compensated using return on investment (ROI) as the key performance measme. The calculation of each branch's ROI does NOT include the use of the technology department's services. There is NO accountability for the use of those services. RMC currently has an organizational ROI of 9%. RMC has received an offer from Syed Inc. to purdtase 1,000 pieces of machinery from the mining or reforestation branches for $3,000,000. Currently, the mining department is the innovation leader and has an ROI of 13%, which is the highest in RMC. The reforestation branch's machinery is very similar to the mining branch's machinery. The reforestation branch is NOT performing as well on innovation and has an ROI of 8%. Each branch that will potentially sell machinery to Syed Inc. will need to purchase additional warehouse equipment in order to meet the increased production levels. The investment in new equipment is estimated to cost $5,000,000. The variable costs of production for the new machinery are $2,000 per unit, and fixed costs are estimated to be $550,000. Required: a) Determine the ROI for the Syed Inc. offer. b) For each of the mining and reforestation branches, discuss whether the branch manager should accept the Syed Inc. offer. Explain why each branch's response might be different. c) Discuss whether RMC as an organization should accept the offer. d) Using expectancy theory, explain what RMC needs to do to improve its compensation system. 3) Discuss a long-term concern with respect to the use of the technology department's services, and how this impacts the compensation of the technology department's manager. f) Recommend an alternative evaluation tool for performance measurement at RMC