"I know headquanters wants us to add that new product line," said Dell Havasi, manager of Billings Company's Olfice 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 ROis. Operating results for the company's Office Products Division for this year are given below: The company had an overall return on investment (ROI) of 18.00% 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 $2,350,000. The cost and revenue characteristics of the new product line per year 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 line by itself 3. Compute the Olfice Products DWision's margin, turnovet, and 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 15% and that performance is evaluated using residuat income. a. Compute the Ortice 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 vear assuming that it performs the same as this vear and adds the Required: 1 Compute the Office Products Division's margin, turnover, and ROl for this year: 2. Compute the Office Products Division's margin, turnover, and ROl for the new product line by itself. 3. Compute the Office Products Division's matgin. tumover, and ROI for next year assuming that it performs the same as this yoar and adds the now 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 15% and that performance is evaluated using residual income. a. Compute the Oifice Products Division's residual income for this yeat. b. Compute the Oifice. 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 residuat 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. 1. Compute the Office Products Division's margin, tumover, and Rol for this year 2. Compute the Otfice Products Division's maroif, turnover, and Rol for the new product line by itself. 3. Compute the Othce Products Division's margin, tumover, and ROl for next year assuming that it performs the same as this. vear and adds the new product line. (Do. hot round intermediate calculations. Round your ans wers to 2 decimal places.) Required: 1. Compute the Office Products Division's margin, turnover, and ROl for this year. 2. Compute the Orfice Products Division's margin, tumover, and ROI for the new product line by itselt. 3. Compute the Office Products Division's margin, turnover, and 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 retum on operating assets is 15% and that performance is evaluated using residual income. a. Compute the Office Products Division's residual income for this yeat. 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 os 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 margin, turnover, and ROl for this year 2. Compute the Office Products Division's margin, turnover, and ROI for the new product line by itself. 3. Compute the Office Products Division's margin, turnover, and 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 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 15% and that performance is evaluated using rosidual income. a. Compute the Orfice 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 accept or reject the new product line? Complete this question by entering your answers in the tabs below. Why do you suppose headquarters is anxious for the Office Products Division to add the new product line? Adding the new line would increase the company's overall ROI. Adding the new line would decrease the company's overall ROI. Required: 1. Compute the Office Products Division's margin, turnover, and ROl for this year. 2. Compute the Office Products Division's margin, turnover, and ROI for the new product line by itself 3. Compute the Otfice Products Division's margin, turnover, and 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 15% 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 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 required rate of return on operating assets is 15% 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 Office Products Division's margin, turnover, and ROl for this year. 2. Compute the Office Products Division's margin, furnover, and ROl for the new product line by itself. 3. Compute the Office Products Division's margin, turnover, and 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 15% 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 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? "I know headquanters wants us to add that new product line," said Dell Havasi, manager of Billings Company's Olfice 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 ROis. Operating results for the company's Office Products Division for this year are given below: The company had an overall return on investment (ROI) of 18.00% 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 $2,350,000. The cost and revenue characteristics of the new product line per year 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 line by itself 3. Compute the Olfice Products DWision's margin, turnovet, and 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 15% and that performance is evaluated using residuat income. a. Compute the Ortice 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 vear assuming that it performs the same as this vear and adds the Required: 1 Compute the Office Products Division's margin, turnover, and ROl for this year: 2. Compute the Office Products Division's margin, turnover, and ROl for the new product line by itself. 3. Compute the Office Products Division's matgin. tumover, and ROI for next year assuming that it performs the same as this yoar and adds the now 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 15% and that performance is evaluated using residual income. a. Compute the Oifice Products Division's residual income for this yeat. b. Compute the Oifice. 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 residuat 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. 1. Compute the Office Products Division's margin, tumover, and Rol for this year 2. Compute the Otfice Products Division's maroif, turnover, and Rol for the new product line by itself. 3. Compute the Othce Products Division's margin, tumover, and ROl for next year assuming that it performs the same as this. vear and adds the new product line. (Do. hot round intermediate calculations. Round your ans wers to 2 decimal places.) Required: 1. Compute the Office Products Division's margin, turnover, and ROl for this year. 2. Compute the Orfice Products Division's margin, tumover, and ROI for the new product line by itselt. 3. Compute the Office Products Division's margin, turnover, and 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 retum on operating assets is 15% and that performance is evaluated using residual income. a. Compute the Office Products Division's residual income for this yeat. 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 os 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 margin, turnover, and ROl for this year 2. Compute the Office Products Division's margin, turnover, and ROI for the new product line by itself. 3. Compute the Office Products Division's margin, turnover, and 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 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 15% and that performance is evaluated using rosidual income. a. Compute the Orfice 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 accept or reject the new product line? Complete this question by entering your answers in the tabs below. Why do you suppose headquarters is anxious for the Office Products Division to add the new product line? Adding the new line would increase the company's overall ROI. Adding the new line would decrease the company's overall ROI. Required: 1. Compute the Office Products Division's margin, turnover, and ROl for this year. 2. Compute the Office Products Division's margin, turnover, and ROI for the new product line by itself 3. Compute the Otfice Products Division's margin, turnover, and 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 15% 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 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 required rate of return on operating assets is 15% 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 Office Products Division's margin, turnover, and ROl for this year. 2. Compute the Office Products Division's margin, furnover, and ROl for the new product line by itself. 3. Compute the Office Products Division's margin, turnover, and 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 15% 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 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