The Outdoor Sports Company produces a wide variety of sports equipment. Its newest division, Golf Technology, manufactures and sells a single productAccuDriver, 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 Outdoor Sports:

Requirement 1. Compute Golf Technology's ROI if the selling price of AccuDrivers is $890 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%.)

Requirement 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? Select the formula that would be used in your calculation to determine the minimum selling price.

Requirement 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%? (Round your 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

Total annual fixed costs $32,000,000

Variable cost per AccuDriver $700.00

Number of AccuDrivers sold each year 175,000

Average operating assets invested in the division $49,000,000