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please answer all required parts. II know headquarters wants us to add that new product line, sald Dell Havasl, manager of Billings Company's Office Products

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please answer all required parts.

II know headquarters wants us to add that new product line," sald Dell Havasl, manager of Billings Company's Office Products Divislon. "But I want to see the numbers before I make a decision. Our division's return on Investment (ROl) has led the company for three years, and I don't want any letdown." Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated using ROI, with year-end ponuses given to the dlvislonal managers who have the highest ROls. Operating results for the company's Office Products Division for hils year are given below: The company had an overall return on Investment (ROl) of 19.00% this year (considering all divisions). Next year the Office Products Pivision has an opportunity to add a new product requiring $2600,000 of additional average operating assets. The annual cost and revenue estlmates for the new product would be: Required: 1. Compute the Office Products Divislon's margin, turnover, and ROI for this year: 2. Compute the Office Products Dlvislon's margin, turnover, and ROI for the new product by itself. 3. Compute the Office Products Divislon's margin, turnover, and ROl for next year assuming it performs the same as this year and adds the new product. 4. If you were in Dell Havasi's position, would you accept or reject the new product? 5. Why do you suppose headquarters is anxlous for the Office Products Division to add the new product? 6. Suppose the company's minimum required rate of return on operating assets is 16% and performance is evaluated using residual Income. a. Compute the Office Products Division's residual Income for thls year. b. Compute the Office Products Division's residual Income for the new product by Itself. c. Compute the Office Products Division's residual Income for next year assuming It performs the same as this year and adds the new product. d. Using the residual Income approach, If you were In Dell Havasi's position, would you accept or reject the new product? Complete this question by entering your answers in the tabs below. 1. Compute the Office Products Division's margin, turnover, and ROI for this year. 2. Compute the Office Products Division's margin, turnover, and ROI for the new product by itself. 3. Compute the Office Products Division's margin, turnover, and ROI for next year assuming it performs the same as this year and adds the new product. Note: Do not round intermediate calculations. Round your answers to 2 decimal places

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