"I know headquarters wants us to add that new product line," said Fred Hallo Products' East Division. "But I want to see the numbers before I make a move. Our division's return on investment (ROI) has led the company for three years, and I don't want any letdown." way, manager of Kirsi Kirsi Products is a decentralized wholesaler with four autonomous divisions. The divisions are evaluated on the basis of ROl, with year-end bonuses given to divisional managers who have the highest ROl Operating results for the company's East Division for last year are given below: Sales $ 22,400,000 Variable expenses 13,000,000 Contribution margin 9,400,000 Fixed expenses Net operating income Divisional operating assets 7,585,600 $ 1,814,400 $ 5,600,000 The company had an overall ROI of 18% last year (considering all divisions). The company's East Division has an opportunity to add a new product line that would require an investment of $2,690,000. The cost and revenue characteristics of the new product line per year would be as follows Sales Variable expenses Fixed expenses $ 8,339,000 65% of sales $2,343,259