The Sports Equipment 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 Sports Equipment: Total annual fixed costs $26,000,000 Variable cost per AccuDriver $ 600 Number of AccuDrivers sold each year 170,000 Average operating assets invested in the division $46,000,000 Q. Compute Golf Technology’s ROI if the selling price of AccuDrivers is $800 per club.
The Sports Equipment 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 Sports Equipment:
Total annual fixed costs $26,000,000
Variable cost per AccuDriver $ 600
Number of AccuDrivers sold each year 170,000
Average operating assets invested in the division $46,000,000
Q. Compute Golf Technology’s
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