1. Omega Inc. is a large business with several divisions, including Delta Division. Omegas headquarters and the majority of its operations are located in Canada, and are concentrated in natural resource extraction and chemical production. The Delta Division is located in Luxembourg and is a manufacturer of luxury soaps and other products aimed at the high-end retail market. Omega has a company-wide ROI of 14% and pays bonuses based on divisional ROI. The before-tax required rate of return on assets for all divisions of Omega is 10%.

Delta Division has reported the following results for 2019:

Sales revenue	$380,000
Variable costs	$220,000
Fixed costs	$125,000
Total operational assets	$150,000

Delta is considering adding a new product line. Projected data for this product line are as follows:

Sales revenue	$73,500
Variable costs	$45,000
Fixed costs	$21,250
Total operational assets	$39,500

1. The decision as to whether or not to delegate decision-making authority is influenced by the type of knowledge required to make decisions. Evaluate whether Omega should delegate decision-making authority to the managers of Delta Division.