Accessibility tab summary: Operating results of Adams Corporation are presented in rows to A statement of requirement is presented in rows to Tables for student presentation are presented in rows: and

Adams Corporation evaluates divisional managers based on ROI. Operating results for the company\'s Northern Division for last year are given below:

Sales                                                            $

Variable expenses                                      

Contribution margin                                  

Fixed expenses                                           

Net operating income                               $

Divisional operating assets                       $

The Northern Division has an opportunity to add a new product line as follows:

Required investment                                $

Net operating income                              $

Adams Corporation\'s minimum acceptable rate of return

Required:

Compute the following:

Use cells A to B from the given information to complete this question.

Northern Division ROI for last year

Northern Division ROI if new product line is added

Determine whether the Northern Division manager will ACCEPT or REJECT the new product line based on ROI.

Northern Division residual income for last year

Northern Division residual income if the new product line is added

Determine whether the Northern Division manager will ACCEPT or REJECT the new product line based on residual income.