"I know headquarters wants us to add that new product line," said Dell Havasi, manager of Billings Compary's Otfice Products Division "But I want to see the numbers before I make any move: Our division's retum on investment (ROi) has led the camnany for minee yean: 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 ROL with year-end bonuses given to the divisional managers who have the highest ROIs, Operating results for the companys Ofrice Products. Division for this year are given below: The company had an overall retum on investment (ROH) of 15% this year (considering all divisinis) Next year the Office Products Division has an opportunity to add a new product line that would fequire an additional investment that would increzse iretrage Required: 2 Compute the Office Products Division's ROI for the new product line by itseit 3. Compute the Office Products Division's Rol for next year assuming that it performs the sane as thrs year and adds the new produnt line. 4. If you were in Dell Havasis position, would you accept of reject the new product tine? 5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product ine? residual income a. Compute the Office Products Division's residual income for thes your b. Compute the Office Products Division's residual income for the rum product line by itself new product line. Complete this question by entering your answers in the tabs belown. 1. Compute the Office Products Division's Rol for this year. 2. Compute the Office Products Division's ROI for the nev prociuct ine by itself. product line. (Do not round intermediate calculations: Found your ansuers to 1 decmal piace.)