Compute the Office Products Division$$s margin, turnover, and ROI for this year.

Compute the Office Products Division$$s margin, turnover, and ROI for the new product by itself.

Compute the Office Products Division$$s margin, turnover, and ROI for next year assuming it performs the same as this year and adds the new product.

If you were in Dell Havasi$$s position, would you accept or reject the new product?

Why do you suppose headquarters is anxious for the Office Products Division to add the new product?

Suppose the company$$s minimum required rate of return on operating assets is $13\%$ and performance is evaluated using residual income.

Compute the Office Products Division$$s residual income for this year.

Compute the Office Products Division$$s residual income for the new product by itself.

Compute the Office Products Division$$s residual income for next year assuming it performs the same as this year and adds the new product.

Using the residual income approach, if you were in Dell Havasi$$s position, would you accept or reject the new product?