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 a decision. 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 using ROI, with year-end bonuses given to the divisional managers who have the highest ROIs. Operating results for the companys Office Products Division for this year are given below:

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 a decision. 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 using ROI, with year-end bonuses given to the divisional managers who have the highest ROIs. Operating results for the companys Office Products Division for this year are given below:

4. If you were in Delt Hawasis pesition, would you accopt or reject the new product? 5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product? 6. Suppose the company's minimum required rate of return on operating assets is 13% and penformance is evaluated using residual income. a. Compute the Orfice Products Division's resdual incone for this year. b. Compute the Office Products Division's residual income for the new proviuct by itself. new product: d. Using the residual income approdeh, if you were in Dell Havasi's position, would you accept or reject the new product? Complete this questlon by entering vour answers in the tabs below, 6. Suppose the company's minimum requifed rate of retum on operating assets is 13% and performance is evaluated using residust income a. Compute the office Products Divition's residual incorne for this vear. b. Compute the Orifice Products Divislons residual incame for the nex product by itselt. c. Compute the Office Products Divisions residual income for next year assuming it performs the same as this year and adds the new product. TKnow headquarters wants us to add that new product line," said Dell Havasi, manager of Bullings Company's Oftice Products Division. -But I want to see the numbers before I make a decision. Our division's return on investment (ROI) has led the company for three years, and ton't want any lerdown, Bisings Company is a decentralized wholesaler with five autonomous divisions, The divisions ate evaluated using ROl, with year-end bonuses given to the divisional managers who have the highest ROIs. Operating results for the company's Office Products Division for this year are given below: The company had an overall return on imvestment (ROI) of 16.00% this year (consideting all divisions). Next year the Oftice Products Division has an opportunity to add a new product requiting $2,289,300 of additional average operating assets. The annual cost and revenue estimates for the new product would be: Required: 1. Compute the Office Products Division's margin, tumover, and ROI for this year. 2. Compute the Office Products Division's margin, turnovet, and ROI for the new product by itself. 3. Compute the Office Products Divilion's margin, tumover, and ROI for next year assuming it performs the same as this year and adds the new product. 4. If you wore in Dell Havasis position, would you accept or reject the new product? 5. Why do vou suppose headquarters it andous for the Office Products Oivision to add the new product? 6. Suppose the company's minimum required rate of return on operating ossets is 13% and performance is evaluated using residual income. a. Compute the Office Products Division's residual income for this year a. 1. Compute the Office Products Division's margin, turnover, and ROI for this year. 2. Compute the Office Products Division's margin, turnover, and ROI for the new product by itself, 3. Compute the Office Products Dlviston's margin, tumover, and ROI for next year ossuming it performs the same as this year and adds the new product. 4. If you were in Dell Havasi's position, would you accept or reject the new product? 5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product? 6 Suppose the company's minimum required rate of return on operating assets is 13% and performance is evaluated using residual income. a. Compute the Olfice Products Division's residual income for this year. b. Compute the Office Products Division's residual income for the new product by itself. c. Compute the Office Products Division's residual income for next year assuming it performs the same as this year and adds the new product. d. Using the residuat income approach, if you were in Dell Havasi's position, would you accept or reject the new product? Complete this question by entering your answers in the tabs below. 1. Compute the Otfice Products Divislon's margin, turnover, and Ror for this year. 2. Compute the orfice Products Division's margin, turnover, and Rol for the new product by itselt, 3. Compute the Office Products Division's margin, turnover, and RoI for next year astuming it performs the same as this yeas and sods the new product. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. the newprodict. 4. If you wore in Dell Havasis position, would you accept or reject the new product? 5. Why do you suppose headquarters is ankious for the Olfice Products Division to add the new product? 6. Suppose the company's minimum required rate of refurn on operating assets is 13% and performance is evaluated using residual income. 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 by itselt c. Compute the Office Products Division's residual income for next year assuming it performs the same as this year and adds the new product. d. Using the residul income approach, if you were in Dell Havasis position, would you accopt or reject the new product? Complete this question by entering your answers in the tabs below. Why do vou suppose headquarters is anxious for the Orfice Products Division to add the new product? 1. Compute the Office Products Division's margin, turnover, and ROI for this year. 2. Compute the Office Products Division's margin, turnover, and ROI for the new product by itself, 3. Compute the Office Products Dlviston's margin, tumover, and ROI for next year ossuming it performs the same as this year and adds the new product. 4. If you were in Dell Havasi's position, would you accept or reject the new product? 5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product? 6 Suppose the company's minimum required rate of return on operating assets is 13% and performance is evaluated using residual income. a. Compute the Olfice Products Division's residual income for this year. b. Compute the Office Products Division's residual income for the new product by itself. c. Compute the Office Products Division's residual income for next year assuming it performs the same as this year and adds the new product. d. Using the residuat income approach, if you were in Dell Havasi's position, would you accept or reject the new product? Complete this question by entering your answers in the tabs below. 1. Compute the Otfice Products Divislon's margin, turnover, and Ror for this year. 2. Compute the orfice Products Division's margin, turnover, and Rol for the new product by itselt, 3. Compute the Office Products Division's margin, turnover, and RoI for next year astuming it performs the same as this yeas and sods the new product. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. the newprodict. 4. If you wore in Dell Havasis position, would you accept or reject the new product? 5. Why do you suppose headquarters is ankious for the Olfice Products Division to add the new product? 6. Suppose the company's minimum required rate of refurn on operating assets is 13% and performance is evaluated using residual income. 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 by itselt c. Compute the Office Products Division's residual income for next year assuming it performs the same as this year and adds the new product. d. Using the residul income approach, if you were in Dell Havasis position, would you accopt or reject the new product? Complete this question by entering your answers in the tabs below. Why do vou suppose headquarters is anxious for the Orfice Products Division to add the new product? TKnow headquarters wants us to add that new product line," said Dell Havasi, manager of Bullings Company's Oftice Products Division. -But I want to see the numbers before I make a decision. Our division's return on investment (ROI) has led the company for three years, and ton't want any lerdown, Bisings Company is a decentralized wholesaler with five autonomous divisions, The divisions ate evaluated using ROl, with year-end bonuses given to the divisional managers who have the highest ROIs. Operating results for the company's Office Products Division for this year are given below: The company had an overall return on imvestment (ROI) of 16.00% this year (consideting all divisions). Next year the Oftice Products Division has an opportunity to add a new product requiting $2,289,300 of additional average operating assets. The annual cost and revenue estimates for the new product would be: Required: 1. Compute the Office Products Division's margin, tumover, and ROI for this year. 2. Compute the Office Products Division's margin, turnovet, and ROI for the new product by itself. 3. Compute the Office Products Divilion's margin, tumover, and ROI for next year assuming it performs the same as this year and adds the new product. 4. If you wore in Dell Havasis position, would you accept or reject the new product? 5. Why do vou suppose headquarters it andous for the Office Products Oivision to add the new product? 6. Suppose the company's minimum required rate of return on operating ossets is 13% and performance is evaluated using residual income. a. Compute the Office Products Division's residual income for this year a. 4. If you were in Delt Hawasis pesition, would you accopt or reject the new product? 5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product? 6. Suppose the company's minimum required rate of return on operating assets is 13% and penformance is evaluated using residual income. a. Compute the Orfice Products Division's resdual incone for this year. b. Compute the Office Products Division's residual income for the new proviuct by itself. new product: d. Using the residual income approdeh, if you were in Dell Havasi's position, would you accept or reject the new product? Complete this questlon by entering vour answers in the tabs below, 6. Suppose the company's minimum requifed rate of retum on operating assets is 13% and performance is evaluated using residust income a. Compute the office Products Divition's residual incorne for this vear. b. Compute the Orifice Products Divislons residual incame for the nex product by itselt. c. Compute the Office Products Divisions residual income for next year assuming it performs the same as this year and adds the new product. 3. Lompute the uince rroaucts uivision s margin, turnover, ana kul tor next year assuming it periorms the same as this year ano ac the new product. 4. If you were in Dell Havasi's position, would you accept or reject the new product? 5. Why do you suppose headquarters is ancious for the Office Products Division to add the new product? 6. Suppose the company's minimum required rate of return on operating assets is 13% and performance is evaluated using residual income. 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 by itself. c. Compute the Office Products Division's residual income for next year assuming it performs the same as this year and adds the new product. d. Using the residual income approach, if you were in Dell Havasi's position, would you accept or reject the new product? Complete this question by entering your answers in the tabs below. If you were in Deil Havasi's position, would you accept or reject the new product? TKnow headquarters wants us to add that new product line," said Dell Havasi, manager of Bullings Company's Oftice Products Division. -But I want to see the numbers before I make a decision. Our division's return on investment (ROI) has led the company for three years, and ton't want any lerdown, Bisings Company is a decentralized wholesaler with five autonomous divisions, The divisions ate evaluated using ROl, with year-end bonuses given to the divisional managers who have the highest ROIs. Operating results for the company's Office Products Division for this year are given below: The company had an overall return on imvestment (ROI) of 16.00% this year (consideting all divisions). Next year the Oftice Products Division has an opportunity to add a new product requiting $2,289,300 of additional average operating assets. The annual cost and revenue estimates for the new product would be: Required: 1. Compute the Office Products Division's margin, tumover, and ROI for this year. 2. Compute the Office Products Division's margin, turnovet, and ROI for the new product by itself. 3. Compute the Office Products Divilion's margin, tumover, and ROI for next year assuming it performs the same as this year and adds the new product. 4. If you wore in Dell Havasis position, would you accept or reject the new product? 5. Why do vou suppose headquarters it andous for the Office Products Oivision to add the new product? 6. Suppose the company's minimum required rate of return on operating ossets is 13% and performance is evaluated using residual income. a. Compute the Office Products Division's residual income for this year a. the new product. 4. If you were th bertitivasts position, would you accept or reject the new product? 5. Why do you stippose headquarters is arxious for the Oflice Products Division to add the new product? 6. Suppose the compsny's minimum required rate of return on operating assets is 13% and performance is evaluated using residual income. a. Comprote the omice Products Diviston's residuat inceme for this yeat b. Compute the Office Products Division's residual income for the new product by itself. c. Compute the Office Products Oivision's residual income for next year assuming it performs the same as this year and adds the new product. Complete this question by entering your answers in the tabs below. Whing the resldual income approach, if you were in Dell Havasi's position, would you accept or faject the new product? the newprodict. 4. If you wore in Dell Havasis position, would you accept or reject the new product? 5. Why do you suppose headquarters is ankious for the Olfice Products Division to add the new product? 6. Suppose the company's minimum required rate of refurn on operating assets is 13% and performance is evaluated using residual income. 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 by itselt c. Compute the Office Products Division's residual income for next year assuming it performs the same as this year and adds the new product. d. Using the residul income approach, if you were in Dell Havasis position, would you accopt or reject the new product? Complete this question by entering your answers in the tabs below. Why do vou suppose headquarters is anxious for the Orfice Products Division to add the new product? the new product. 4. If you were th bertitivasts position, would you accept or reject the new product? 5. Why do you stippose headquarters is arxious for the Oflice Products Division to add the new product? 6. Suppose the compsny's minimum required rate of return on operating assets is 13% and performance is evaluated using residual income. a. Comprote the omice Products Diviston's residuat inceme for this yeat b. Compute the Office Products Division's residual income for the new product by itself. c. Compute the Office Products Oivision's residual income for next year assuming it performs the same as this year and adds the new product. Complete this question by entering your answers in the tabs below. Whing the resldual income approach, if you were in Dell Havasi's position, would you accept or faject the new product? 4. If you were in Delt Hawasis pesition, would you accopt or reject the new product? 5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product? 6. Suppose the company's minimum required rate of return on operating assets is 13% and penformance is evaluated using residual income. a. Compute the Orfice Products Division's resdual incone for this year. b. Compute the Office Products Division's residual income for the new proviuct by itself. new product: d. Using the residual income approdeh, if you were in Dell Havasi's position, would you accept or reject the new product? Complete this questlon by entering vour answers in the tabs below, 6. Suppose the company's minimum requifed rate of retum on operating assets is 13% and performance is evaluated using residust income a. Compute the office Products Divition's residual incorne for this vear. b. Compute the Orifice Products Divislons residual incame for the nex product by itselt. c. Compute the Office Products Divisions residual income for next year assuming it performs the same as this year and adds the new product. 3. Lompute the uince rroaucts uivision s margin, turnover, ana kul tor next year assuming it periorms the same as this year ano ac the new product. 4. If you were in Dell Havasi's position, would you accept or reject the new product? 5. Why do you suppose headquarters is ancious for the Office Products Division to add the new product? 6. Suppose the company's minimum required rate of return on operating assets is 13% and performance is evaluated using residual income. 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 by itself. c. Compute the Office Products Division's residual income for next year assuming it performs the same as this year and adds the new product. d. Using the residual income approach, if you were in Dell Havasi's position, would you accept or reject the new product? Complete this question by entering your answers in the tabs below. If you were in Deil Havasi's position, would you accept or reject the new product? 1. Compute the Office Products Division's margin, turnover, and ROI for this year. 2. Compute the Office Products Division's margin, turnover, and ROI for the new product by itself, 3. Compute the Office Products Dlviston's margin, tumover, and ROI for next year ossuming it performs the same as this year and adds the new product. 4. If you were in Dell Havasi's position, would you accept or reject the new product? 5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product? 6 Suppose the company's minimum required rate of return on operating assets is 13% and performance is evaluated using residual income. a. Compute the Olfice Products Division's residual income for this year. b. Compute the Office Products Division's residual income for the new product by itself. c. Compute the Office Products Division's residual income for next year assuming it performs the same as this year and adds the new product. d. Using the residuat income approach, if you were in Dell Havasi's position, would you accept or reject the new product? Complete this question by entering your answers in the tabs below. 1. Compute the Otfice Products Divislon's margin, turnover, and Ror for this year. 2. Compute the orfice Products Division's margin, turnover, and Rol for the new product by itselt, 3. Compute the Office Products Division's margin, turnover, and RoI for next year astuming it performs the same as this yeas and sods the new product. Note: Do not round intermediate calculations. Round your answers to 2 decimal places