\"I know headquarters wants us to add that new product line,\" said Dell HavosL manager of Blttings Compeny's Office Products Division \"But I want to see the numbers before I make any move Our division's retum on investment (ROl) has led the company for three years? and I don't want any letdown: Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evoluoted on the basis of ROI whith year-end bonuses given to the divisionat managers who have the highest ROls Operating results for the comparys Olfice Products Division for this year are given below The company hod an overall return on investment (ROD of \\( 1700 \\mathrm{k} \\) this year (considering alt divisions) Next year the Othice Products Division has on opportunify to add a new product line that would require an additional investment that would increase average operating ossets by \\( \\$ 3,857.400 \\) The cost and revenue charbcterstics of the new product line par year would be- Required: Required: 1. Compute vie Office Products Division's margin, turnovet, and Rol for the year. 2 Compute the Office Products Division's margin, turnover, and Rol for the now product line by iselt 3 Compute the Ofice Products Division's margin, tumover, and Rol for next year assuming that it performs the same as this year and odds the new product line. 4. If you were in Dell Havisis position, would you accept or reject the new product line? 5. Why do you suppose headquarters is anxious for the Ortice Products Division to add the new product line? 6. Suppose that the companys minimum required rate of retuin on operating assets is \14 and that performance is evaluated using residual income. a. Compute the Office Products Division's residualincome for this year. B. Compute the Orfice Products Division's residual income for the new product line by itsel c. Compute the Office Products. Division's residuat income for next year assuming that it performs the same as this year and adds the new product line new product line d Using the residual income approach, if you were in Dell Havasi's position, would you accept or ieject the new product line