Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please fill in the blanks know headquarters wants us to add that new product line, said Dell Havasi, manager of Billings Companys Office Products Division.
Please fill in the blanks know headquarters wants us to add that new product line," said Dell Havasi, manager of Billings Companys Office Products Division. "But want to see the numbers before I make any move Our division's return on investment (ROI) has led the company for three years, and Idon't want any letdown. Billings Company is a decentralized wholesaler with five utonomous 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 the most recent year are given below: 22900000 Net operating income 2381800 Divisional operating assets The company had an overall return on investment (ROI) of 17.00% last year (considering all divisions) The Office Products Division has an opportunity to add a new product line that would require an additional nvestment in operating assets of $2.484,500 The cost and revenue characteristics of the new product line per year would be $8.912 400 Required Compute the Office Products Division's ROI for the most recent year: also compute the ROI as it would appear if the new product line is added. (Do not round intermediate calculations. Round your Turnover answers to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i e., 0.1234 should be entered as 12.34)) 22 00000 1282400 2381600 160.000 Net operating income 14.00 f you were in Dell Havasi s position, would you accept or reject
Please fill in the blanks
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started