"I know headquarters wants us to add that new product line," said Dell Havasi, manager of Bulings Company's Office Products Division "But I want to see the numbers before I make any move. Our division's tetum on investment (ROI) fas led the company for three years. and I don't want any letdown." Blllings 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 comparty had an overail refurn on investment (ROI) of 18.00% this year (considering all divisions). Next year the Oifice Products Division has an opportunity to add a new product line that would require an additional investment that would increase average operating assets by $2.350.000. The cost and revenue characteristics of the new product line per year would be: Required: 1. Compute the Orfice Products Division's margin, tumover, and ROI for this year 2. Compute the Oifice Products Division's margin, timoveri and ROl for the new product line by itself. 3. Compute the Olfice Products Division's margin, tumover, and ROI for next year assuming that it pertorms the same as this year and adds the new product line. 4. If you were in Dell Havasis position, would you accept or reject the new product line? 5. Why do you suppose headquarters is anxious for the Orife Products Division to add the new product line? 6. Suppose that the compary's minimum required tate of ietum on operating assets is 15% and that performance is evaluated using Required: 1. Compute the Olfice Products Division's margin, turnover, and ROl for this year. 2. Compute the Oifice Products Division's margin, tumover, and POl for the new product line by itself 3. Compute the Office Products Division's margin, turnover, and ROl for next year assuming that it performs the same as this year and adds the riew product line: 4. If you were in Dell Havasi's position, would you accept or reject the new product une? 5. Why do you suppose headquarters is anxious for the Orfice Products Division to achd the new product line? 6. Suppose that the company's minimum required rate of retum on operating assets is 1596 and that performance is evaluated using resictual income. a. Compute the Orfice Products Division's residual income for this year. b. Compute the Olfice Products Division's residual income for the new product line by itselt. c. Compute the Otfice Products Division's residual income for next year assiming that it performs the same as this-year and adds the new product line. d. Using the residual income approach, if you were in Deli Havasis position, would you accept or reject the new product line? Complete this question by entering your answers in the tabs below. 1. Compute the Olfice Products Division's margin, turnover, and RO1 for this year. 2. Compute the Office Products Division's margin, furnover, and ROI for the new product line by ifself. 3. Compute the Oftice Products Division's margin, tumover, and ROI for next year assuming the new product line. (Do not round interanediate catculations. Pound youm answersito 2 decimal places.) Complete this question by entering your answers in the tabs below. 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 3. Compute the Office Products Division's margin, turnover, and ROI for next year assumir year and adds the new product line. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 4. If you were in Dell Havasi's position, would you accep Office Products Division to add 5. Why do you suppose headquarters is anxious for the Office Products of . Suppose that the company's minimum required rate of return on operating assets is 6. 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 line by c. Compute the Office Products Division's residual income for next year assuming that new product line. d. Using the residual income approach, if you were in Dell Havasi's position, would you Complete this question by entering your answers in the tabs below. If you were in Dell Havasi's position, would you accept or reject the new product line? 4. If you were in Dell Havasi's position, would you accep Office Products Division to add the new product line? 5. Why do you suppose headquarters is anxious ror the Ofice products on operating assets is 15% and that performance is evaluate 6. Suppose that 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 residual income for next year assuming that it performs the same as this year and 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 entering your answers in the tabs below. Why do you suppose headquarters is anxious for the Office Products Division to add the new product line? ew product line. 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. 6. Suppose that the company's minimum required rate of return on operating assets is 15% and that 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 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. 4. If you were in Dell Havasis position, 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 return on operating assets is 15% and that performance is evaluated usin 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 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 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 entering your answers in the tabs below. Using the residual income approach, if you were in Dell Havasi's position, would you accept or reject the new product line