\"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 ofthe return thatthey are able to generate on invested assets. with year-end bonuses given to the divisional managers who have the highest ROI figures. Operating results for the com pany's office products division for the most recent year are as follows: Sales $366, 993,899 Less: Variable expenses 215,999,686 Contribution margin 144,999,666 Less: Fixed expenses 115,299,669 Net operating income $ 23,899,693 Divisional operating assets $ 66,999,686 The company had an overall ROI of15.5% 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 $36,000.000. The cost and revenue characteristics ofthe new product line per yearwould be as follows: Sales $ ?2,saa,sss Variable expenses 59% of sales Fixed expenses $ 23,946,699 Required: 1. Compute the office products division's ROI for the most recent year; also compute the ROI ifthe new product line were added. [Do Required: 1. Compute the office products division's ROI forthe most recent year; also compute the ROI ifthe 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 12.34961.) 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 3. This part of the question is not part ofyour Connect assignment. 4. Suppose that the company views a return of15.0% on invested assets as being the minimum that any division should earn and that performance is evaluated by the RI approach. a. Compute the office products division's RI for the most recent year; also compute the RI as it would appear if the new product line were added.