Chapter $11$ Case

"I know headquarters wants us to add that new product line," said Fred Holloway, manager of Kristi Products' West Division. "But I want to see the numbers before I make a move. Our division's return on investment $(ROI)$ has led the company for three years, and I don't want any letdown."

Kristi Products is a decentralized wholesaler with four autonomous divisions. The divisions are evaluated on the basis of ROI, with year$-$end bonuses given to divisional managers who have the highest ROI. Operating results for the company's West Division for the last year are given below:

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