Adams Corporation evaluates divisional managers based on ROI. Operating results for the company's Northern Division for last year are given below: . $ 5 6 Sales Variable expenses Contribution margin Fixed expenses Net operating income 27,000,000 16,200,000 10,800,000 8,805,000 1.995,000 7 8 9 10 Average divisional operating assets $ 9,500,000 11 12 The Northern Division has an opportunity to add a new product line at the beginning of the year as follows: 13 14 Average required investment Net operating income $ $ 15 2,500,000 400,000 16 17 Adams Corporation's minimum acceptable rate of return! 15% 18 19 Assuming the company accepts all projects that meet or exceed the minimum rate of return, compute the following: 20 21 Northern Division ROI for last year 21.00% 22 23 Northern Division ROI if new product line is added 19.96% 30 Northern Division residual income if the new product line is added 31 32 Write an IF statement to determine whether the Northern Division manager 33 will ACCEPT or REJECT the new product line based on residual income 34