"I know headquarters wants us to add that new product line," said Dell Havasl, manager of Balings Company's Office Products Division. "Butl want to see the numbers before I make any move. Our division's return on investment (ROD) 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 evaluated on the basis of ROI, with year-end bonuses given to the divisional managers who have the highest ROls. Operating results for the company's Otfice Products Division for this year ore given below. The company had an overall return on investment (RO1) of 1800% this year (considering all divisiono) Next year the Olfice Products Division has an opportunity to add a new product line that would require an additional investment that would increase averoge operoting assets by $2,262,500. The cost and revenue characteristics of the new product line per year would be Required: 1. Compute the Orfice Products Division's margin, turnover. and ROl for this year 2. Compute the Office Products Division's margin, turnover, and ROl for the new product line by itselt. 3. Compute the Office Products Dlvision's margin, turnover, and ROl for next yeor assuming that it performs the some os this year and adds the new product ine. 4. If you were in Dell Havesis position, wou d you accept or relect the new product line? 5. Why do you suppose headquarters is anxious for the Office Products Bivision to add the new product line? 6. Suppose thot the company's minimum required rate of return on operating asisets is 16% and that performance is evaluated uting residual income. a Compute the Offce Products Division's residual income for this year. b. Compite the Oifice Products Division's residud income for the new product line by itselt c. Compute the office Products Division's residuel income for next yes assuming that it performs the same as this year and adds the new product line d. Using the residuol income-approachy if you were in Deil Hovasis position, would you accept or reject the new product line? Complete this question by entering your answers in the tabs below. 1. Compute the office Products Division s margin, turnover, and RoI for this year. 2. Compute the Cifice Products bivision si margin, turnover, pnd Rot for this year. 3. Compute the office Produrts Division's maroin, tumover, and Rot for next Vear assumino that it performs the same as this vear and adds the new product line. (Do not round intermediate Culeilations. Rovind yeur answexs to 2 deomal places.)