"I know headquarters wants us to add that new product line said Dell Havasi, manager of Billings Company's Office Products Division. "But I want to see the numbers before l make any move. Our division's return on investment (ROI) h led the company for three years, and I don't want any letdown." as Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to the divisional managers who have the highest Rois. Operating results for the company's Office Products Division forthe most recent year are given below: 21,810,000 Sales Variable expenses 13,741,200 Contribution margin 8,068,800 Fixed expenses 6,040,000 2,028,800 Net operating income 4,363,000 Divisional operating assets The company had an overall return on investment (RO) of 18.00% 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 $2,350,000. The cost and revenue characteristics of the new product line per year would be: 9,396,500 Sales Variable expenses 65% of sales 2,564,875 Fixed expenses