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i just need required 3 and required 6a to 6c Tknow headquarters wants us to add that new product line, said Dell HavasL, manager of

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"Tknow headquarters wants us to add that new product line," said Dell HavasL, manager of Billings Company's Office Products Division. "Eut I want to see the numbers before I make a decision. Our division's refurn on investment (ROi) has led the company for three yess, and I don t want any letdown" Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated using ROI, with year-end bonuses glven to the divisional managers who have the highest ROls. Operating results for the company's Office Products Oivision for this year are given below: The company had an overall return on investment (ROI) of 17.00% this year (considering all divisions). Next year the Office Products Division has an opportunity to add a new product requiring $3,261,000 of additional average operating assets. The annual cost and revenue estimates for the new product would be Required: 1. Compute the Office Products Division's margin, turnover, and ROI for this yeat 2. Compute the Office Products Division's margin, turnover, and ROI for the new product by itself. 3. 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. 4. If you were in Dell Havasis position, would you accept or reject the new product? 5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product? 6. Suppose the company's minimum required rate of retum on operating assets is 14% and 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 by itself. c. Compute the Office Products Division's residual income for next year assuming it performs the same as this year and adds the new product. d. Using the residual income approach, if you were in Dell Havasi's position, would you accept or reject the new product? the new product. 4. If you were in Dell Havasi's position, would you accept or reject the new product? 5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product? 6. Suppose the company's minimum required rate of return on operating assets is 14% and 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 by itself. c. Compute the Office Products Division's residual income for next year assuming it performs the same as this year and adds the new product. d. Using the residual Income approach, if you were in Dell Havasi's position, would you accept or reject the new product? Complete this question by entering your answers in the tabs below. 1. Compute the Office Products Division's margin, turnover, and ROI for this year. 2. Compute the Office Products Division's margin, turnover, and ROI for the new product by itself. 3. 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. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. new product. d. Using the residual income approach, if you were in Dell Havasi's position, would you accept or reject the new product Complete this question by entering your answers in the tabs below. 6. Suppose the company's minimum required rate of return on operating assets is 14% and 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 by itself. c. Compute the Office Products Division's residual income for next year assuming it performs the same as this year and adds the new product

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