'But I want to see the numbers before I make any move. Out divison's return on investment (RO0) has led the compsny for three years. and I dont want any letdown." ailings Compeny is a decentra5zed wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROL, with Wiar-end bonuses given to the divisional managers who have the highest ROLs. Operating results for the company's Otfice Products Division for this year are given below: The company had an overall return on investment (RO) of 15% 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 $1,000,000. The cost and revenue characteristics of the new product line per year would be Required: 1. Compute the Office Products Division's ROI for this yeot. 2. Compute the Office Products Division's ROI for the new product line by itselt. 3. Compute the Orfice Products Division's ROI for next year assuming that it performs the same as this year and adds the new product the. 4. If you were in Dell Havasi's position, would you accept or reject the riew product line? 5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product line? 6. 5 uppose that the company/s minimum required rate of return on operating assets is 12% and that performance is evaluated using residual income. a. Compute the Otfice Products Division's residual income for this year, b. Compute the Offce Products Division's residual income for the new product line by itselt. c Compute the Otfice Products Division's residual income for next year assuming that it performs the same as this year and adds the new product line. d. Using the residual income approach, if you were in Dell Havasi's position, would you accept or reject the new product Ine