Managerial Accounting Need urgent Help.

quarters desite to add a new product line, Stetan Grenier, manager of Bilti Products' East Dhviskon, felt that he had to see the numbers before he made a move. Hs diviskon's ROt has led the c company for three years, and he doesn't want any letdown is a decentralized wholesales with four autonomous divisions. The divisions are evaluated on the basis of ROL with year end bonuses given to divisional managers wha hawe the highest ROR Operating results for the company's East Division for last Bilti Products i year are gven below The company had an overal ROl of 14% lest year (considering al ditsionsl The rew product Ine that headquarters wants Grenier,s East Division to add would require an investment of $5,000000 The cost and revensue characteristics af the new product ne per year would be as follows s 4, 508, 80 1. Compute the East Division's ROI for last year also compute the RC as t would appear it the new product line were added (De nat round intermediate celculations. ) or reject the new product line? East Adding the new line would decrease the company's overall ROI e Adding the new line would increase the company's overall RO 4. Suppose that the company's minimum required rate of return on operating assets is 1 % and that performance is evaluated using residual income a. Compute East Division's residual income for last year; also compute the residual income as it would appear if the new product line were added b Under these circumstances, if you were in Grenier's pasition, would you accept or reject the new product line? Reject