"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 (ROl) has led the company for three years, and I don't want any letdown," Bilings 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 this year are given below: The company had an overall return on investment (ROI) of 18.00%6 this year (considering all divisions). Next year the Office Products Pivision has an opportunity to add a new product line that would require an additional investment that would increase average pperating assets by $2,262,500. The cost and revenue characteristics of the new product line per year would be: Required: Compute the Office Products Division's ROl for this year. 2. Compute the Office Products Division's ROl for the new product line by itself 3. Compute the Office Products Division's ROl for next year assuming that it perf Bilings Compary is a decentralized wholesaler with five autonomous divistons. The divisions are evaluated on the basis of ROG, with rear-end bonuses given to the divisional managers Who have the highest ROls. Operating resilts for the company's Office Products Division for this year are given below The company had an overall return on invesiment (ROI) of 1800X thin year (considering all divisions) Next year the Ofice Products Pivision has an opportunity to add a new product line thot would iequire an oddidional investment that would inciease average operating assets by $2,262,500. The cost and revenue charactefistics of the new product line per year would be Required: C. Compute the Office Products Division's ROI for this year 2. Compute the Olfice Products Division's ROI for the new product line by itself 3. Compute the Office Products Division's ROI for next year assuming that it performs the same as this year and adds the new product ine. 4. If you were in Dell Havasi's position, would you accept or reject the new product line? 5. Why do you suppose headquarters is anxious for the Ottice Products Dwision to add the new product ine? 5. Why do you suppose heodquarters is anxious for the Othice froducts Division to sod the new productine? 5. Supose the company's minimum required rate of retum on operating assets is 16% and that performance is evaluated using residual income. 3. Compute the Office Products Oivision's residual income for this year. 3. Compute the Orfice Products Division's residual income for thisyear. 5. Compute the Office Products Oivision's residual income for nex year assuming that it performs the same as this year and adds the hew product line. 1. Using the residual income approach, if you were in Dell Havasis position, would you accept or reject the new product line? 1. Compute the Office Products Divishol's RoI for this year 2. Compute the Office Products Division's ROI for the new product line by itself. 3. Compute the Office Products Division's RoI for next year assuming that it performs the same as this year and adds the new product line. (Do not round intermediate calculations. Round your aniswers to 2 decimal places.) Complete this question by entering your answers in the tabs below. If you were in Delf Havatil's position, wouid you accept or reject the new product line? a. Compute the Office Products Division's residual income for this year b Compute the Office Products Division's residual income for the new product line by itself 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. d. Using the residual income approach, if you were in Dell Havasi's position, would you accept or reject the new product line? Complete this question by chtering your answers in the tabs below. Why do you zupposa headquarters 15 anxious for the office iroducts Division to add the new product line? Adding the now line would increase the company? overall ROI Adding the new line wosidd decrease the company'n overall ROI B. Compute the Otfice Products Division's residval income for this year. 6. Compute the Orfke Products D.visions red dual income for the new product line by itrelt. c. Compute the Ofice Products Divstons refoual income for nent yma assaming that it peiforans the same as this year and adds the new product line d. Usirg the residual income approden. I you were wi Deil Hovoses position would you accept or reject tite new product ine? complete this question ty centering your answars in the tobs below. bita thir now grodlict ine 4. if you were in Dell Havasi's positon, would you accept or reject the new product line? 5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product line? 6. Suppose that the company's minimum required rate of retum on operating assets is 16% and that performance is evaluated using residuat income. a. Compute the Office Products Division's residuat income for this year. b. Compute the Ofice Products Division's residual income for the new product line by itself. c. Compute the Office Products Division's residual income for next year assuming that it performs the same as this year and adds the new product line a. Using the residual income approach, if you were in Dell Havasi's position, would you accept or reject the new product line? Complete this question by entering your answers in the tabs below. Using the resitual income approach. If you were in Dell Havasi's position, would you acceot or reject the new product line? "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 (ROl) has led the company for three years, and I don't want any letdown," Bilings 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 this year are given below: The company had an overall return on investment (ROI) of 18.00%6 this year (considering all divisions). Next year the Office Products Pivision has an opportunity to add a new product line that would require an additional investment that would increase average pperating assets by $2,262,500. The cost and revenue characteristics of the new product line per year would be: Required: Compute the Office Products Division's ROl for this year. 2. Compute the Office Products Division's ROl for the new product line by itself 3. Compute the Office Products Division's ROl for next year assuming that it perf Bilings Compary is a decentralized wholesaler with five autonomous divistons. The divisions are evaluated on the basis of ROG, with rear-end bonuses given to the divisional managers Who have the highest ROls. Operating resilts for the company's Office Products Division for this year are given below The company had an overall return on invesiment (ROI) of 1800X thin year (considering all divisions) Next year the Ofice Products Pivision has an opportunity to add a new product line thot would iequire an oddidional investment that would inciease average operating assets by $2,262,500. The cost and revenue charactefistics of the new product line per year would be Required: C. Compute the Office Products Division's ROI for this year 2. Compute the Olfice Products Division's ROI for the new product line by itself 3. Compute the Office Products Division's ROI for next year assuming that it performs the same as this year and adds the new product ine. 4. If you were in Dell Havasi's position, would you accept or reject the new product line? 5. Why do you suppose headquarters is anxious for the Ottice Products Dwision to add the new product ine? 5. Why do you suppose heodquarters is anxious for the Othice froducts Division to sod the new productine? 5. Supose the company's minimum required rate of retum on operating assets is 16% and that performance is evaluated using residual income. 3. Compute the Office Products Oivision's residual income for this year. 3. Compute the Orfice Products Division's residual income for thisyear. 5. Compute the Office Products Oivision's residual income for nex year assuming that it performs the same as this year and adds the hew product line. 1. Using the residual income approach, if you were in Dell Havasis position, would you accept or reject the new product line? 1. Compute the Office Products Divishol's RoI for this year 2. Compute the Office Products Division's ROI for the new product line by itself. 3. Compute the Office Products Division's RoI for next year assuming that it performs the same as this year and adds the new product line. (Do not round intermediate calculations. Round your aniswers to 2 decimal places.) Complete this question by entering your answers in the tabs below. If you were in Delf Havatil's position, wouid you accept or reject the new product line? a. Compute the Office Products Division's residual income for this year b Compute the Office Products Division's residual income for the new product line by itself 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. d. Using the residual income approach, if you were in Dell Havasi's position, would you accept or reject the new product line? Complete this question by chtering your answers in the tabs below. Why do you zupposa headquarters 15 anxious for the office iroducts Division to add the new product line? Adding the now line would increase the company? overall ROI Adding the new line wosidd decrease the company'n overall ROI B. Compute the Otfice Products Division's residval income for this year. 6. Compute the Orfke Products D.visions red dual income for the new product line by itrelt. c. Compute the Ofice Products Divstons refoual income for nent yma assaming that it peiforans the same as this year and adds the new product line d. Usirg the residual income approden. I you were wi Deil Hovoses position would you accept or reject tite new product ine? complete this question ty centering your answars in the tobs below. bita thir now grodlict ine 4. if you were in Dell Havasi's positon, would you accept or reject the new product line? 5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product line? 6. Suppose that the company's minimum required rate of retum on operating assets is 16% and that performance is evaluated using residuat income. a. Compute the Office Products Division's residuat income for this year. b. Compute the Ofice Products Division's residual income for the new product line by itself. c. Compute the Office Products Division's residual income for next year assuming that it performs the same as this year and adds the new product line a. Using the residual income approach, if you were in Dell Havasi's position, would you accept or reject the new product line? Complete this question by entering your answers in the tabs below. Using the resitual income approach. If you were in Dell Havasi's position, would you acceot or reject the new product line