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 I make any move. Our division's return on investment (ROI) 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 Office Products Division for the most recent year are given below: 22,300,000 Variable expenses 13,999,600 Contribution margin Fixed expenses 8,300,400 6,115,000 $ 2,185,400 S 5,575,000 Net operating income Divisional operating assets The company had an overall return on investment(ROI) of 17.00% last year (consid enng all d visions). The Office Products Division has an opportunity to add a new product line that would require an additional investmen i operaing assets of $3,857,400. The cost and revenue characterstics of the new product ine per year would be: Sales Variable expenses Fixed expenses $ 9,650,000 65% of sales $ 2,583,600 MacBook Air SC FI F2 F5 2 4