Question
In: Accounting
The New Athletics Company produces a wide variety of outdoor sports equipment. Its newest division, Golf...
The New Athletics Company produces a wide variety of outdoor 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
Requirements
|
1. |
Compute Golf Technology's ROI if the selling price of AccuDrivers is $640 per club. |
|
2. |
If management requires an ROI of at least 30% from the division, what is the minimum selling price that the Golf Technology Division should charge per AccuDriver club? |
|
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%? Total annual fixed costs $35,000,000 Variable cost per AccuDriver $400 Number of AccuDrivers sold each year 170,000 Average operating assets invested in the division $49,000,000 |
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Land's Bend sells a wide variety of outdoor equipment and clothing. The company sells both through...
Land's Bend sells a wide variety of outdoor equipment and
clothing. The company sells both through mail order and via the
internet. Random samples of sales receipts were studied for
mail-order sales and internet sales, with the total purchase being
recorded for each sale. A random sample of 1616 sales receipts for
mail-order sales results in a mean sale amount of $72.50$72.50
with a standard deviation of $20.75$20.75. A random sample of 77
sales receipts for internet sales results in...
K.Brew sells a wide variety of outdoor equipment and clothing. The company sells both through mail...
K.Brew sells a wide variety of outdoor equipment and clothing.
The company sells both through mail order and via the internet.
Random samples of sales receipts were studied for mail-order sales
and internet sales, with the total purchase being recorded for each
sale. A random sample of 14 sales receipts for mail-order sales
results in a mean sale amount of $80.40 with a standard deviation
of $24.75. A random sample of 10 sales receipts for internet sales
results in a...
K.Brew sells a wide variety of outdoor equipment and clothing. The company sells both through mail...
K.Brew sells a wide variety of outdoor equipment and clothing.
The company sells both through mail order and via the internet.
Random samples of sales receipts were studied for mail-order sales
and internet sales, with the total purchase being recorded for each
sale. A random sample of 8sales receipts for mail-order sales
results in a mean sale amount of $78.70 with a standard deviation
of $18.75. A random sample of 17 sales receipts for internet sales
results in a mean...
J.J.Bean sells a wide variety of outdoor equipment and clothing. The company sells both through mail...
J.J.Bean sells a wide variety of outdoor equipment and clothing.
The company sells both through mail order and via the internet.
Random samples of sales receipts were studied for mail-order sales
and internet sales, with the total purchase being recorded for each
sale. A random sample of 1717 sales receipts for mail-order sales
results in a mean sale amount of $78.60$78.60 with a standard
deviation of $24.75$24.75. A random sample of 99 sales receipts
for internet sales results in a...
Perkins Company manufacturers a wide variety of products in its Dallas Division. The Dallas plant was...
Perkins Company manufacturers a wide variety of products in its
Dallas Division. The Dallas plant was created to be an efficient
producerof standardized products made in long-production runs
although both high and low volume products are now producted there
. Annual volums range from severl thousand units for some products
to fewer than 10 for others. In recent year, much of the Dallas
plants usual business in high volume products ha been lost to
competitiors who price aggressivley and who...
Outdoor Sports is considering adding a putt putt golf course to its facility. The course would...
Outdoor Sports is considering adding a putt putt golf course to
its facility. The course would cost $182,000, would be depreciated
on a straight-line basis over its 6-year life, and would have a
zero salvage value. The sales would be $87,100 a year, with
variable costs of $28,150 and fixed costs of $12,750. In addition,
the firm anticipates an additional $21,300 in revenue from its
existing facilities if the putt putt course is added. The project
will require $3,350 of...
Outdoor Sports is considering adding a putt putt golf course to its facility. The course would...
Outdoor Sports is considering adding a putt putt golf course to
its facility. The course would cost $170,000, would be depreciated
on a straight-line basis over its 6-year life, and would have a
zero salvage value. The sales would be $78,400 a year, with
variable costs of $27,550 and fixed costs of $12,150. In addition,
the firm anticipates an additional $16,500 in revenue from its
existing facilities if the putt putt course is added. The project
will require $2,750 of...
Outdoor Sports is considering adding a putt putt golf course to its facility. The course would...
Outdoor Sports is considering adding a putt putt golf course to
its facility. The course would cost $171,000, would be depreciated
on a straight-line basis over its 4-year life, and would have a
zero salvage value. The sales would be $97,400 a year, with
variable costs of $27,600 and fixed costs of $12,200. In addition,
the firm anticipates an additional $16,900 in revenue from its
existing facilities if the putt putt course is added. The project
will require $2,800 of...
Outdoor Sports is considering adding a putt putt golf course to its facility. The course would...
Outdoor Sports is considering adding a putt putt golf course to
its facility. The course would cost $168,000, would be depreciated
on a straight-line basis over its 4-year life, and would have a
zero salvage value. The sales would be $90,300 a year, with
variable costs of $27,450 and fixed costs of $12,050. In addition,
the firm anticipates an additional $15,700 in revenue from its
existing facilities if the putt putt course is added. The project
will require $2,650 of...
Outdoor Sports is considering adding a putt putt golf course to its facility. The course would...
Outdoor Sports is considering adding a putt putt golf course to
its facility. The course would cost $179,000, would be depreciated
on a straight-line basis over its 6-year life, and would have a
zero salvage value. The sales would be $90,000 a year, with
variable costs of $28,000 and fixed costs of $12,600. In addition,
the firm anticipates an additional $20,100 in revenue from its
existing facilities if the putt putt course is added. The project
will require $3,200 of...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What...
- How would you use SAS Enterprise Miner to create a neural network model of your example?
- Explain the use of neural networking modeling in predictive analytics.
- Current Market Mix of Netflix, as detail as possible, please.
- This is all one question, thank you so much in advance! You must evaluate a proposal...
- X Company is considering the purchase of a new processor that costs $200,000. Shipping and setup...
- There are a large number of tasks involved in information technology and programming, and many of...
ADVERTISEMENT