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Please answer 6 A - C . Thank you Sales Variable expenses Contribution margin Fixed expenses Net operating income Divisional average operating assets The company

Please answer 6A-C. Thank you
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Sales Variable expenses Contribution margin Fixed expenses Net operating income Divisional average operating assets The company had an overall return on investmeht (ROI) of 17.00% this year (considering all divisions). Next year the Office Products Division has an opportunity to add a new product line that would require an additional investment that would increase average operating assets by $3,261,000. The cost and revenue characteristics of the new product line per year would be: Sales Variable expenses Fixed expenses Required: 65% of sales 1. Compute the Office Products Division's ROI for this year. 2. Compute the Office Products Division's ROI for the new product line by itself. 3. Compute the Office Products Division's ROI for next year assuming that it performs the same as this year and adds the new product line. 4. If you were in Dell Havasi's position, would you accept or reject the new product line? S. Why do you suppose headquarters is anxious for the Office Products Division to add the new product line? 6. Suppose that the company's minimum required rate of return on operating assets is 14% and that performance IS eVaiuated using residual income.] a. Compute the Office Products Division's residual income for this year. b. Compute the Office Products Division's residual income for the new product line by itself/ c. Compute the Office Products Division9esiduaLincome for next year assuming that it performs the same as this year and adds the, pew product line, d. using the residual income approach, if you were in Dell Havasi's position, would you accept or reject the new product line?

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