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 ROIs. Operating results for the companys Office Products Division for the most recent year are given below:

Sales	$	22,835,000
Variable expenses		14,297,200
Contribution margin		8,537,800
Fixed expenses		6,190,000
Net operating income	$	2,347,800
Divisional operating assets	$	4,000,000

The company had an overall return on investment (ROI) of 17.00% last year (considering all divisions). The Office Products Division has an opportunity to add a new product line that would require an additional investment in operating assets of $2,755,000. The cost and revenue characteristics of the new product line per year would be:

Sales	$ 9,915,000
Variable expenses	65% of sales
Fixed expenses	$ 2,607,450

Compute the Office Products Divisions ROI for the most recent year; also compute the ROI as it would appear if the new product line is added. (Do not round intermediate calculations. Round your Turnover answers to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) COMPUTE Sales, Net Operating Income, Operating Assets, Margin (as a %), Turnover, and ROI (as a %) for Present, New Line and TOTAL.

Suppose that the companys minimum required rate of return on operating assets is 14.00% and that performance is evaluated using residual income.

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Compute the Office Products Divisions residual income for the most recent year; also compute the residual income as it would appear if the new product line is added. (Enter your Minimum Required Rate as a whole percentage (i.e., 0.12 should be entered as 12).) Compute Operating Assets, Minimum Required Return (as a %) , Actual Net Operating Income and Minimum Net Operating Income for Present, New Line and Total.