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The All Year Sports Company produces a wide variety of sports equipment. Its newest division, Golf Technology, manufactures and sells a single product-AccuDriver, a golf
The All Year Sports 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 All Year Sports: (Click the icon to view the data.) Read the requirements Requirements Data Table $ 30,000,000 $ 700 1. Compute Golf Technology's ROI if the selling price of AccuDrivers is $940 per club. 2. If management requires an ROI of at least 25% from the division, what is the minimum selling price that the Golf Technology Division should charge per AccuDriver club? 3. Assume that All Year Sports judges the performance of its investment centers on the basis of Rl 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 18%? Total annual fixed costs Variable cost per AccuDriver Number of AccuDrivers sold each year Average operating assets invested in the division 135,000 $ 54,000,000 Print Done Print Done
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