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Online Assignment #4 Faced with headquarters' desire to add a new product line, Stefan Grenler, manager of Bilti Products' East Division, felt that he had

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Online Assignment #4 Faced with headquarters' desire to add a new product line, Stefan Grenler, manager of Bilti Products' East Division, felt that he had t see the numbers before he made a move. His division's ROI has led the company for three years, and he doesn't want any letdown Bilti Products is a decentralized wholesaler with four autonomous divisions. The divisions are evaluated on the basis of ROl, with yea end bonuses given to divisional managers who have the highest ROI. Operating results for the company's East Division for last year are given below: The company had an overall ROl of 12% last year (considering all divisions). The new product line that headquarters wants Grenier's East Division to add would require an investment of $5,850,000. The cost and revenue characteristics of the new product line per ye would be as follows

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