relatively insensitive to price changes. The following data are available for Golf Technology, which is an investment center for Fresh Air Sports:

$($Click the icon to view the data.$)$

Read the requirements.

Requirement $1.$ Compute Golf Technology's $R{O}_{?}$ if the selling price of AccuDrivers is $$590$ 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$=\frac{\text{O}\text{p}\text{e}\text{r}\text{a}\text{t}\text{i}\text{n}\text{g}\text{i}\text{n}\text{c}\text{o}\text{m}\text{e}}{\text{I}\text{n}\text{v}\text{e}\text{s}\text{t}\text{m}\text{e}\text{n}\text{t}}=$

Total annual fixed costs

Variable cost per AccuDriver

Number of AccuDrivers sold each year

Average operating assets invested in the division

$ $27,000,000$

$$,400$

$160,000$

$$45,000,000$

Compute Golf Technology's $RO{I}_{?}$ if the selling price of AccuDrivers is $$590$ per

club.

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?

Assume that Fresh Air Sports judges the performance of its investment

centers on the basis of $R_{?}$ 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 $20\%?$