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Consumer Services Division is one part of The division ex pects this level of per formance to continue for Year 2.Senior service line that would

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Consumer Services Division is one part of The division ex pects this level of per formance to continue for Year 2.Senior service line that would result in the following revenues and costs Vargas Corporation. The Consumer Services Division reported income of $112,000 on an investment in operating assets of $800000 for Year 1 management of Vargas Car par ation has askand the Consumer Services Division to consider adding anew Revenues Variable expenses Direct fixed expenses Average operating assets 240,000 110,000 70,000 500,000 Required: 1) Compute the ROl that would be generate d by the new product line 2) Compute the ROl for the Consumer Service s Division without the new product line 3) Compute the Consumer Services Division's residual income without the ne w product line and with the new product line. The target ROI is 115 4) would the new product lire benefit the company as a whoe? ROfo-the company asa whole is 10%, wa the Consumer Servees Oven ikely the new product tne given the company suse of ROI as s performancemessure? Why or why not? which performance ev slustion mesure wll more likely motvare the division mansger to do what is best for the compsny s who e

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