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Question 2: E23-23 (similar to) The New Athletics Company produces a wide variety of sports equipment. Its newest division, Golf Technology, manufactures and sells a
Question 2: E23-23 (similar to) The New Athletics Company produces a wide variety of sports equipment. Its newest division, Golf Technology, manufactures and sells a single product - AccuDriver, a golf club that uses global positioning satellite technology to improve the accuracy of golfers' shots. The 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.) Read the requirements. Requirement 1. Compute Golf Technology's ROI if the selling price of AccuDrivers is $650 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 = Operating income Investment Nice work! Nice work! % 11 Edit Table Requirements Cancel des If ver is san chr Siti ati Compute Golf Technology's RON 1. the selling price of AccuDrivers is S650 per club. ad gu If management requires an Rol of at least 20% from the division, what is the 2 minimum selling price that the Golf Technology Division should charge per AccuDriver club? as a cer = ce 3. Assume that New Athletics judges the performance of its investment centers on the basis of RI rather than ROL What is the minimum selling price that Golf Technology should charge per AccuDriver if the company's required rate of return is 18%? ce Cancel Data Table ues ne 1 If Total annual fixed costs $27,000,000 chi siti 0
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