Office Equipment Inc. is a decentralized structured organization with several divisions. These divisions are valued based on changes in returns on the assets they invest in. The following are the operating results of the Retail Division for the current year: Sales RM2,500,000 Variable expense 1,250,000 contribution margin 1,250,000 xed expense 900,000 Operating net income RM 350,000 Divisional operating assets RM 1,800,000 The Retail Division has the opportunity to add a new product line with an investment of RM300,000. Data related to the new product line is as follows: sales RM800,000 variable expense 60% from sales xed expense RM300,000 Required: a) Calculate the current ROI of the Retail Division and the ROI of the Retail Division with the adoption of the new product line. Will the management of the Retail Division accept or reject this new product line investment? b) If a return of 6% is the minimum that any division should achieve and excess earnings are used to evaluate managers, will this encourage the Retail Division to adopt new product lines? Explain and show the estimate