2 "l know headquarters wants us to add that new product line," said Dell Havasi, manager of Billings Company's Office Products Division. "But I want to see the numbers before I make any move. Our division's return on investment (ROI) has led the company for three years, and I don't want any letdown." 10 points Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to the divisional managers who have the highest ROls. Operating results for the company's Office Products Division for this year are given below: Skipped Sales Variable expenses Contribution margin Fixed expenses Net operating income Divisional average operating assets 22,900,000 14,313,400 8,586,600 6,205,000 $ 2,381,600 4,580,000 eBook Print References The company had an overall return on investment (ROI) of 17.00% this year (considering all divisions). Next year the Office Products Division has an opportunity to add a new product line that would require an additional investment that would increase average operating assets by $2,484,500. The cost and revenue characteristics of the new product line per year would be Sales Variable expenses Fixed expenses $9,942,400 65% of sales $2,602,240