"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: 22,600,000 Sales Variable expenses 14,157,400 Contribution margin Fixed expenses 8,442,600 6,160,000 $ 2,282,600 $ 4,520,000 et operating income Divisional operating assets The company had an overall return on investment (ROI) of 16.00% 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 $2,450,000. The cost and revenue characteristics of the new product line per year would be Sales Variable expenses Fixed expenses $9,800,000 65% of sales $ 2,595,000