"know headquarters wants us to add on that new product line." said Del Havasi, manager of filings Company's office prochets division. But I want to see the numbers before I make any move. Our division has led the company for three years, and I don't want any letdown Billings Company is a decentralized organization with five autonomous civisions. The divisions are evaluated on the basis of the return that they are able to generate on invested assets, with year end bonuses given to the divisional managers who have the highest ROI figures Operating results for the company's office products division for the most recent year are as follows: Sale Less Valable expenses Contribution margin Less Fived expenses Net operating income Divisional Operating assets $147,500,000 110,635, 16,875,000 29,500, The company had an overall Rol of 70% last year considering all desions. The office products division has an opportunity to add a new product line that would require an additional investment in operating assets of $14.750,000. The cost and revenue characteristics of the new product line per year would be as follows: Sales Variable dans 122, 125,00 255 of sales 34,425,000 Required: 1. Compute the office products divisions ROI for the most recent year also compute the Rolf the new product line were added. Do not round Intermediate calculations. Round "Percentage answers to 2 decimal places ... 0.1234 should be considered as 4. Suppose that the company views a return of 6.5% on invested assets as being the minimum that any division should eam and that performance is evaluated by the Rl approach a. Compute the office products division's Rl for the most recent year, also compute the Ras it would appear if the new product line were added. New Line Total Present S 3,540,000 RI