Division W is one segment of Adelphi Corporation.

For 2019, Division W reported operating income of $220,000 with an average investment in operating assets of $800,000. The division expects this level of performance to continue for 2020.

The company borrows money at 12% annual interest rate and desires a rate of return that is at least equal to that interest cost.

The senior management of Adelphi Corporation has asked Division W to consider investing new average operating assets of $1,000,000 in adding a new product/service line that would result in the following revenues and costs:

Revenue	$920,000
Variable expenses	$310,000
Fixed expenses	$420,000

Based on the above information, answer the following questions: [Note, ROI = Operating Income Average Operating Assets]

1. Compute the Return On Investment for Division W without the new product line.
2. Compute the Return On Investment that would be generated solely by the new product line.
3. Compute the Return On Investment for Division W, with the new product line included.
4. ls the manager of Division W likely to add the new product line given the company's use of ROI as a performance measure? Why or why not? Explain briefly but completely.
5. What should the company do to make the new product line acceptable to Division W?