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i know how to calculate the present, but how do i calculate the product line that is new and the total I know headquarters wants
i know how to calculate the present, but how do i calculate the product line that is new and the total
"I know headquarters wants us to add that new product line," said Brian Stettler, manager of Sparks Products' Central Division. "But I want to see the numbers before I make a move. Our division's return on investment (ROI) has led the company for three years, and I don't want any letdown." Sparks Products is a decentralized wholesaler with four autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to divisional managers who have the highest ROI. Operating results for the company's Central Division for last year are given below: The company had an overall ROI of 18% last year (considering all divisions). The company's Central Division has an opportunity to add a new product line that would require an investment of $3,430,000. The cost and revenue characteristics of the new product line per year would be as follows: Compute the Central Division's ROI for last year, also compute the ROI as it would appear if the new product line is added. (Do not round intermediate percentage values. Round your intermediate calculations and final answers to 2 decimal places.)
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