I know headquarters wants us to add that new product line, said Dell Havasi, manager of Billings Companys Office Products Division. But I want to see the numbers before I make any move. Our divisions return on investment (ROI) has led the company for three years, and I dont 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 ROIs. Operating results for the companys Office Products Division for the most recent year are given below:

Required:
1.	Compute the Office Products Divisions ROI for the most recent year; also compute the ROI as it would appear if the new product line is added. (Do not round intermediate calculations. Round your Turnover answers to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)

Sales $22,900,000 Variable expenses 14,313,400 Contribution margin 8,586,600 Fixed expenses Net operating income Divisional operating assets 6,205,000 $2,381,600 $ 4,580,000 The company had an overall return on investment (ROI) of 17.00% 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 $2,484,500. The cost and revenue characteristics of the new product line per year would be: Sales Variable expenses Fixed expenses $ 9,942,400 65% of sales $ 2,602,240