please do required 1-3, and 6A-6C
"I know headquarters wants us to add that new product line," sald Dell Havasl. manager of Blilings Company's Orfice Products Division "But I want to see the numbers before I make any move, Our division's retum on investment (ROI) has led the company for three years, and I don't want any letdown." Bilings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to the divisional managers who have the highest ROls. Operating results for the company's Office Products Division for this year are given bqiow: The company had an overall return on Imvestment (ROI) of 16.00% this year (considering all divislons). 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 $2.450,000. The cost and revenue characterlstics of the new product line per year would be: Required: 1. Compute the Office Products Division's margin, tumover, and ROI for this year, 2. Compute the Office Products Division's margin, turnover, and ROl for the new product line by liselt. 7 Cnmnute the Offire Prndiurts Dividinn's marain tumnower and ROI for next vear ascuminn that it nerfnome the came as this upar and 1. Compute the Eifice Products Division's margin, turnover, and ROI for this year, 2. Compute the Office Products Dlvision's margin, turnover, and ROI for this year, for the new product line by ltself. 3. Compute the Office Products Dlvision's margin, tumover, and ROI for next year assuming that it performs the same as to year and adds the new product line. (Do not round intermediate cafculations. Round your answers to 2 decimal places.) 6. Suppose that the company's minimum required rate of return on operating assets is 13% and that performance is evaluated using residual income. a. Compute the Office Products Division's residual income for this year. b. Compute the Office Products Division's resldual income for the new product line by itself. c. Compute the Office Products Divlsion's residual income for next year assuming that it performs the same as this year and adds the new product line