"I know headquarters wants us to add on 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 has led the company for three years, and I don't want any letdown. Billings Company is a decentralized organization with five autonomous divisions. The divisions are evaluated on the basis of the retun that they are able to generate on invested assets, with year-end bonuses given to the divisional managers who have the highest ROl figures. Operating results for the company's office products division for the most recent year are as follows: Sales $370,000,000 Less: Variable expenses 277,500,000 Contribution margin 92,500,000 Less: Fixed expenses Net operating income Divisional operating assets 74,000,000 S 18,500,000 74,000,000 The company had an overall ROI of 9.5% last year (considering all divisions). The office products division has an opportunity to add operating assets of $37,000,000. The cost and revenue characteristics of the new product line per would be as follows: a new product line that would require an additional investment in year $74,000,000 Sales Variable expenses Fixed expenses 75% of sales $14,800,000 Required 1. Compute the office products division's ROl for the most recent year, also compute the ROl if the new