?I know headquarters wants us to add that new product line,? said Fred Halloway, manager of Kirsi 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.? Kirsi Products is a decentralized wholesaler with four autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to divisional managers who have the highest ROI. Operating results for the company?s East Division for last year are given below: Sales $ 21,000,000 Variable expenses 13,400,000 Contribution margin 7,600,000 Fixed expenses 5,920,000 Net operating income $ 1,680,000 Divisional operating assets $ 5,250,000 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 $3,000,000. The cost and revenue characteristics of the new product line per year would be as follows: Sales $ 9,000,000 Variable expenses 65% of sales Fixed expenses $ 2,520,000 (for the rest of the problem, please refer to attachment)