Faced with headquarters' desire to add a new product line, Stefan Grenier, manager of Bilti Products' East Division, felt that he ha see the numbers before he made a move. His division's ROI has led the company for three years, and he doesn't want any letdow. Bilti Products is a decentralized wholesaler with four autonomous divisions. The divisions are evaluated on the basis of ROI, with end bonuses given to divisional managers who have the highest ROI. Operating results for the company's East Division for last ye are given below: Sales Variable expenses Contribution margin Fixed expenses Operating income Divisional operating assets $24,500,000 13,850,000 10,650,000 8,445,000 $ 2,205,000 $ 6,125,000 The company had an overall ROI of 19% last year (considering all divisions). The new product line that headquarters wants Grenier's East Division to add would require an investment of $3,500,000. The cost and revenue characteristics of the new product line pery would be as follows: Sales Variable expenses Fixed expenses $ 10,500,000 70% of sales $ 2,415,000 Damuriran. Faced with headquarters' desire to add a new product line, Stefan Grenier, manager of Bilti Products' East Division, felt that he ha see the numbers before he made a move. His division's ROI has led the company for three years, and he doesn't want any letdow. Bilti Products is a decentralized wholesaler with four autonomous divisions. The divisions are evaluated on the basis of ROI, with end bonuses given to divisional managers who have the highest ROI. Operating results for the company's East Division for last ye are given below: Sales Variable expenses Contribution margin Fixed expenses Operating income Divisional operating assets $24,500,000 13,850,000 10,650,000 8,445,000 $ 2,205,000 $ 6,125,000 The company had an overall ROI of 19% last year (considering all divisions). The new product line that headquarters wants Grenier's East Division to add would require an investment of $3,500,000. The cost and revenue characteristics of the new product line pery would be as follows: Sales Variable expenses Fixed expenses $ 10,500,000 70% of sales $ 2,415,000 Damuriran