"I know headquarters wants us to odd that new product line," soid Dell Hovasi, manager of Billings Company's Office Products Division. "But I want to see the numbers before I moke any move. Our division's return on investment (ROD) has led the company for three yeors, and I don't want any letdown." Billings Compony is o decentralized wholessler with five outonomous divisions. The divisions are evoluoted on the bosis of ROI, with year-end bonuses given to the divisional managers who hove the highest ROIs. Operoting results for the company's Office Products Division for this year ore given below: The company had an overall return on investment (ROI) of 17.00% this year (considering all divisions). Next year the Office Products Division hos on opportunity to odd o new product line thot would require on odditional investment that would increose average operating sssets by $2,400,000. The cost and revenue charocteristics of the new product line per yeor would be: Required: 1. Compute the Office Products Division'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 ROl for next yeor ossuming thot it performs the same os this yeor ond odds the new product line. 4. If you were in Dell Hovosi's position, would you occept or reject the new product line? 5. Why do you suppose heodquorters is onxious for the Office Products Division to odd the new product line? 6. Suppose that the compony's minimum required rote of return on operating ossets is 14% and that performance is evaluated using residual income. o. 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 ossuming that it performs the some as this year and adds the new product line. d. Using the residual income opprosch, if you were in Dell Hovasi's position, would you accept or reject the new product line? Complete this question by entering your answers in the tabs below. 1. Compute the Office Products Division'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 7 know heodquarters wants us to odd that new product line," soid Dell Hovesi, monoger of Billings Compony's Office Products Division. "But I want to see the numbers before I moke ony move. Our division's retum on investment (RO) has led the compony for three yeors, and I don't wont any letdown." Billings Compony is o decentrolized wholesaler with five outonomous divisions. The divisions are evoluoted on the bosis of ROL, with year-end bonuses given to the divisional monogers who hove the highest ROls. Operating results for the compony's Office Products Division for this yeor ore given below: The compony hod on overoll return on investment (ROI) of 17.00% this yeor (considering oll divisions). Next yeor the Office Products Division hes on opportunity to odd o new product line that would require on odditional investment that would increose overoge operating assets by $2,400,000. The cost and revenue charocteristics of the new product line per year would be: Required: 1. Compute the Office Products Division's ROI for this yeer. 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 yeor ossuming that it performs the some as this yeor ond odds the new product line. 4. If you were in Dell Hovosi's position, would you occept or reject the new product line? 5. Why do you suppose heodquorters is orxious for the Office Products Division to odd the new product line? 6. Suppose that the company's minimum required rote of return on operasing assets is 14% and that performance is evoluated using residuol income. Q. Compute the Office Products Division's residual income for this yeor: 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 odds the new product line. d. Uning the residual income opprooch, if you were in Dell Hovosi's position, would you occept or reject the new product line? 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? 7 know heodquorters wonts us to odd that new product line," soid Dell Hovosi, monoger of Billings Compony's Office Products Division. "But I wont to see the numbers before I moke any move. Our division's return on investment (RO) has led the company for three years, and I don't want any letdown." Billings Compony is o decentralized wholesoler with five outonomous divisions. The divisions are evoluated on the bosis 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 ore given below: The company hod an overall return on investment (ROD) of 17.00% this year (considering all divisions). Next year the Office Products Division has on opportunity to odd o new product line that would require on odditional investment that would increase overage operating assets by $2,400,000. The cost and revenue characteristics of the new product line per year would be: Required: 1. Compute the Office Products Division'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 ROIfor next year assuming that it performs the same as this year and adds the new product line. 4. If you were in Dell Hovasi's position, would you occept or reject the new product line? 5. Why do you suppose heodquarters is anxious for the Office Products Division to odd the new product line? 6. Suppose that the company's minimum required rate of return on operating assets is 14% and thet performance is evaluated using residual income. a. Compute the Office Products Division's residuol income for this year. b. Compute the Office Products Division's residual income for the new product line by itselt. c. Compute the Office Products Division's residual income for next year assuming that it performs the some as this year and odds the new product line. d. Using the residual income opprooch, if you were in Dell Hovosily position, would you occept 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 Orfice Products Division to add the new product line? "I know headquarters wants us to odd that new product line," soid Dell Hovosi, monoger of Billings Company's Office Products Division. "But I want to see the numbers before I moke 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 o decentralized wholesoler with five outonomous divisions. The divisions ore evoluoted 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 17.00% this year (considering all divisions). Next year the Office Products Division has an opportunity to add o new product line that would require on odditional investment that would increase average operating assets by $2,400,000. The cost and revenue charocteristics of the new product line per year would be: Required: 1. Compute the Office Products Division'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 yeor assuming that it performs the same os this yeor and odds the new product line. 4. If you were in Dell Hovosi's position, would you occept or reject the new product line? 5. Why do you suppose heodquarters is anxious for the Office Products Division to odd the new product line? 6. Suppose that the company's minimum required rote of return on operating assets is 14% 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 some as this year and odds the new product line. d. Using the residual income opprooch, 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 14% and that performance is evaluated using residual income. a. Compute the Office Products Division's residuat income for this year. b. Compute the Orfice Products Division's residual income for the new product line by itself. c. Compute the Orfice Products Division's residual income for next year assuming that it performs the same as this year and adds the new product line. "I know headquarters wants us to odd that new product line," soid Dell Havosi, 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 (ROD) has led the company for three years, and I don't want any letdown." Billings Compony is o decentralized wholesoler with five outonomous divisions. The divisions are evoluoted on the bosis of ROI, with year-end bonuses given to the divisional managers who hove the highest ROls. Operating results for the company's Office Products Division for this year ore given below: The company hod an overall return on investment (ROI) of 17.00% this year (considering all divisions). Next year the Office Products Division has on opportunity to odd o new product line that would require on odditional investment that would increose average operating ossets by $2,400,000. The cost and revenue charocteristics of the new product line per yeor would be: Required: 1. Compute the Office Products Division'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 yeor assuming that it performs the same as this yeor and odds the new product line. 4. If you were in Dell Hovosi's position, would you occept or reject the new product line? 5. Why do you suppose hesdquorters is anxious for the Office Products Division to odd the new product line? 6. Suppose that the company's minimum required rate of return on operating assets is 14% and that performance is evaluated using residual income. o. 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 some as this year and odds the new product line. d. Using the residual income opproach, 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