$22,600,000 Variable expenses 4.157400 Contribution margin 8.442.600 Fixed expenses 6.160.000 Net operating income 2.282.600 Divisional operating assets 4,520,000 The company had overall retu tment (ROI) of 16.00% last year (oonsid g all divisi The Office Products pportunity to add product line that would require additional investment in operating characteristics of the new product ine per year would bec $9,800,000 Variable expo 66% of sales Fixed expenses $2,595,000 Required Compute the Office Products Division's ROI for the most recent year also compute the ROI asst would appearif the new product ine is added. (Round the "Margin". Turnover" and "ROI" answers to 2 decimal place Present New Line Total Net operating Operating Margin 2. you were in Dell Havasis position, would you accept or reject the new product line? Reject 3. Why do you suppose headquarters is anxious for the Office Products Division to add the new product line? Adding the new line would Increase the company's overall ROI. Adding the new line would Decrease the company's overall ROI. 4. Suppose that the company's minimum required rate of retum on operating assets is 13.00% and that performance is evaluated using residual income. a. Compute the Office Products Division's residual income for the most recent year also compute the residualincome as it would appear if the new product line is added. Line Total Operating assets Minimum net operating Actual net operating ts of $2,450,000. The cost and