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help awnser quickly thanks! awnser all parts of question 7 know headquarters wants us to add that new product line, said Dell Havasi, manager of

help awnser quickly thanks! awnser all parts of question
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7 know headquarters wants us to add that new product line," said Dell Havasi, manager of Billings Company's Office Products Division "But I want to see the numbers before. I make any move, Our division's return on investment (ROn) has led the company for three years, and I don't want any letdown." Bilings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to the divisional managers who have the highest ROls. Operating results for the company's Office Products Division for this year are given below: The company had an overall return on investment (RO) of 16.00% this year (considering all divisions). Next year the Office Products Division has an opportunity to add a new product line that would require an additional investment that would increase average operating assets by $2,501,000. The cost and revenue characteristics of the new product line per yeor would be: Required: 1. Compute the Office Products Division's ROI for this yeat, 2. Compute the Office Products Division's ROl for the new product line by itselt. 3. Compute the Office Products Division's RO1 for next year assuming that it performs the same as this year and adds the new product line. 4. If you were in Dell Hovasi's position, would you accept or reject the new product line? 5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product line? 6. Suppose that the company's minimum required rate of return on operating assets is 13% and that performance is evaluated using residual income. a. Compute the Office Products Division's residual income for this year. b. Compute the Office Products Division's residual income for the new product line by itself. C. Compute the Office. Products Division's residual income for next year assuming that it performs the same as this year and adde the Required: 1. Compute the Office Products Division's ROl for this year. 2. Compute the Office Products Division's ROI for the new product line by itselt. 3. Compute the Otice Products Division's ROI for next yeor assuming that it performs the same as this year and adds the new product iline. 4. If you were in Dell Havasi's position, would you accept or reject the new product line? 5. Why do you suppose headquarters is anxious for the Otfice Products Division to add the new product line? 6. Suppose that the company's minimum required rate of return on operating assets is 13% and that performance is evaluated using residual income. a. Compute the Office Products Division's residual income for this year. b. Compute the Office Products Division's residual income for the new product line by itself c. Compute the Office Products Division's residual income for next year assuming that it performs the same as this year and adds the new product line. d. Using the residual income approach, if you were in Dell Havasi's position, would you occept or reject the new product line? Complete this question by entering your answers in the tabs below. 1. Compute the orfice Products Division's Ror for this year. 2. Compute the Office Products Division's Rol for the new product une by itself. 3. Compute the Office Products Division's ROI for next year assuming that it performs the same as this year and adds the new product line. (Oo not round intermediate calculations. found your answers to 2 decimal places.) Required: 1. Compute the Office Products Division's ROl for this year 2. Compute the Office Products Division's ROI for the new product line by itself 3. Compute the OIfice Products Divisian's ROI for next year assuming that it performs the same as this year and adds the new product line 4. If you were in Dell Havasi's position, would you accept or reject the new product line? 5. Why do you suppose headquarters is andous for the Office Products Division to add the new product line? 6. Suppose that the company's minimum required rate of return on operating assets is 13% and that performance is evaluated using residual income. a. Compute the Office Products Division's residual income for this year b. Compute the Office Products Division's residual income for the new product line by itselt. c. Compute the Office Products Division's residual income for next year assuming that it performs the same as this year and adds the new product line. d. Using the residual income approach, if you were in Dell Havasi's position, would you accept or reject the new product line? Complete this question by entering your answers in the tabs below. If you were in Dell Havasi's position, would you accept or reject the new product line? Required: 1. Compute the Office Products Division's ROl for this year 2. Compute the Office Products Division's ROI for the new product line by itselt: 3. Compute the Office Products Division's ROl for next year assuming that it performs the same as this year and adds the new product line. 4. If you were in Dell Havasi's position, would you accept ot reject the new product line? 5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product line? 6. Suppose that the company's minimum required rate of retum on operating assets is 13% and that performance is evaluated using residual income. a. Compute the Office Products Division's residual income for this year. b. Compute the Office Products Division's residual income for the new product line by itself. c. Compute the Office Products Division's residual income for next year assuming that it performs the same as this year and adds the d. Using the residual income approach, if you were in Dell Havasi's position, would you accept or reject the new product line? new product line. Complete this question by entering your answers in the tabs below. Why do you suppose headquarters is ansious for the Oifice Products Division to add the new product line? Addre the new line would increase the company's oweral ROL. Adding the new Ine would decrease the company's cverall ROl Requlred: 1. Compute the Oifice Products. Division's ROl for this yeat. 2. Compute the Office Products Division's ROl for the new product line by itseif. 3. Compute the Office Products Division's ROl for noxt year assuming that it performs the same as this year and adds the new product line 4. If you were in Dell Havasis position, would you accept or reject the new product line? 5. Why do you suppose hesdquarters is anxious for the Office Products Division to add the new product line? 6. Suppose that the company's minimum required rate of return on operating assets is 13% and that performance is evaluated using residual income. a. Compute the Oftice Products Division's residual income for this year. b. Compute the Ottice Products Division's residualincome for the new product line by itself. c. Compote the Oefice Products Division's residual income for next year assuming that it performs the same as this year and adds the new product line. d. Using the residual income approach, if you were in Dell Havasi's position, would you accept or reject the new product line? Complete this question by entering your answers in the tabs below. 6. Suppose that the company's minimum requiled rate of return on operating assets is 13% and that performance is evaluated using residual income. a. Compute the Office Products Division's residual income for this year. b. Compute the Office Products Division's residual income for the new product line by itself. c. Compute the Otfice Products Division's residual income for next year assuming that it performs the same as this year and adds the new product line. Required: 1. Compute the Oftice Products Division's ROl for this year. 2. Compute the Office Products Division's ROl for the new product line by itself. 3. Compute the Orlice Products Division's ROI for next year assuming that it performs the same as this year and adds the new product line. 4. If you were in Dell Havasi's position, would you accept or reject the new product line? 5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product line? 6. Suppose that the company's minimum required rate of return on operating assets is 13% and that performance is evaluated using residual income. a. Compute the Office Products Division's residual income for this year. b. Compute the Office Products Division's residual income for the new product line by itself. c. Compute the Office Products Division's residual income for next year assuming that it performs the same as this year and adds the new product line. d. Using the residual income approach, If you were in Dell Havasis position, would you accept or reject the new product line? Complete this question by entering your answers In the tabs below. Using the residual income approach, if you were in Dell Havasi's position, would you accept or reject the new product line

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