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I know headquarters wants us to add on that new product line, said Dell Havasi, manager of Billings Company's office producls division. But I want
\"I know headquarters wants us to add on that new product line,\" said Dell Havasi, manager of Billings Company's office producls division. \"But I want to see the numbers belore I make any move. Our division has led the company for three years, and I don't want any leldown.\" Billings Company is a decentralized organizallon with five autonomous divisions. The divisions are evaluated on the basis of the return that they are able lo generate on invested assets, with year-end bonuses given to the divisional managers who have the highest ROI figures. Operating results for the company's office producls division for the most recent year are as follows: The company had an overall ROI of \15 lasl year (considering all divisions). The office producls division has an opporlunity lo add a new producl line that would require an additional Investment in operating assets of \\( \\$ 1,000,000 \\). The cosi and revenue characlerislics of the new producl ine per year would be as follows: Required: 1. Compute the office products division's ROI 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 1 decimal place, (I.e., 0.123 should be considered as \12.3.) 2. If you were in Dell Havasi's position, would you be inclined to accept or reject the new producl line? Accept Reject 3. This part of the question is not part of your Connecl assignment. 4. Suppose that the company views a relurn of \12 on invesled assets as being the minimum that any division should earn and that performance is evalualed by the Rl approach. a. Compule the office products division's RI for the most recent year; also compute the RI as II would appear if lhe new producl line were added
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