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1. Compute the East Division's ROI for the last year; compute the ROI asit would appear if the new product line were added. 2. if
1. Compute the East Division's ROI for the last year; compute the ROI asit would appear if the new product line were added.
2. if you were in Grenier's position, would you accept or reject the new product line?
3. why do you suppose headquarters is anxious for the East Diivision to add the new product line?
4 (a) compute eastern division's residual income for last year; also compute the residual income as it would appear if the new product line were added.
i need step by step explanation plus answer thanks.
Sales Variable expenses Contribution angin Fixed expenses Operating income Divisional operating assets $25,230,8ce 13,148,60 11, 258,800 9,244,600 $ 2,015,80 $3,400,000 The company had an overall ROI of 125 lost year (considering all divisions). The new product line that headquarters wants Grenler's Esst Division to add would require an investment of $5,400,000. The cost and revenue characterstics of the new product line per yes! would be as follows: Sales Variable porcos Fixed expenses $ 10,60,000 Set of sales $ 3,564,100 Required: 1. Compute the East Division's Rol for last year, also compute the ROI would appear if the new product line were added. (Do not round Intermediate calculations. Round your final answer to the nearest whole number) Precent New Un Total ROU 2 you were in Grenler's position, would you accept or reject the new product line? Accept Rejes 3. Why do you suppose headquarters is anxious for the Esst Division to do the new product line? Ade ng the new line would decrease the company's overal ROI. Accing the new line would increase the comenys overe ROI 4. Sucose the the comenys min man recules ret of retu on operating szett 10% and the performance : 235 were ales Sou come a. Comoure Esst Don's resicul income for last yesto compute the usl Income would see if the new goductie were soses Procent Newline TOStep by Step Solution
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