"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 return 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 $75,000,000 Less: Variable expenses 45,000,000 Contribution margin 30,000,000 Less: Fixed expenses Net operating income Divisional operating assets 24,000,000 6,000,000 $30,000,000 The company had an overall ROI of 11.5% last year (considering all divisions). The office products division has an opportunity to add a new product line that would require an additional investment in operating assets of $7,500,000. The cost and revenue characteristics of the new product line per year would be as follows Sales Variable expenses Fixed expenses $11,250,000 60% of sales $ 3,600,000 Required: 1. Compute the office products division's ROl for the most recent year, also compute the ROl if the new product line were added. (Do not round intermediate calculations. Round "Percentage" answers to 2 decimal places, (i.e., 0.1234 should be considered as 12.34%).) Present New Line Total ROI 2. If you were in Dell Havasi's position, would you be inclined to accept or reject the new product line? O Accept O Reject