The Albert Medical Equipment Company manufactures a variety of equipment used in hospitals. The company operates in a very price-competitive industry. To meet the market price, the company must operate as efficiently as possible and keep production costs in check. Its Cleveland Division manufactures and sells a a blood pressure monitor called ClearBeat. The following estimated data are available for the Cleveland Division for the current year:

Total expected annual fixed costs	$30,000,000
Expected sales price per unit	$720
Expected annual sales volume of ClearBeat	150,000 units
Net book value of total assets at the beginning of this year	$48,000,000

Note: When calculating ROI (return on investment) or RI (residual income), always use beginning of the year net book value of the assets. Ignore taxes. If rounding is needed, please round your answers to two digits after the decimal point.

(a) If the per unit cost of ClearBeat is $500, then the expected accounting income for the current year is $______

(b) If the per unit cost of ClearBeat is $500, then the expected ROI for the current year is _____%

(c) If the Cleveland Division wants to achieve an ROI of at least 25%, the per unit cost of ClearBeat cannot exceed $______

(d) Assume that the company judges the performance of its investment centers on the basis of RI instead of ROI. If the company's cost of capital is 20%, to avoid a negative RI, the cost per unit of ClearBeat cannot exceed $ ______

The following information applies to questions (e) and (f):

One of the machines that the Cleveland Division uses in manufacturing is rather old, and manager must decide whether to replace it by the end of this year. The new machine would cost $30,000 to purchase and begin operational at the beginning of next year. The new machine would last 10 years with no salvage value. The new machine, being new and more efficient, would save the division $8,000 per year in cash operating costs. Assume straight-line depreciation.

(e) The residual income from this investment for the next year will be $_______ . (Please make sure to include a negative sign if the residual income for this investment is negative)

(f) The manager of the Cleveland Division will retire after the end of next year and his bonus is tied to the division's annual residual income. Will the manager choose to replace the machine? Please simply fill in "yes" or "no" here ______