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please silve this. I know headquarters wants us to add on that new product line, said Dell Havasi, manager of Billings Company's office products division,

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"I know headquarters wants us to add on that new product line," said Dell Havasi, manager of Billings Company's office products division, "But I want to see the numbers before I make any move. Our division has led the company for three years, and I don't want any letdown," Billings Company is a decentralized organization with five autonomous divisions. The divisions are evaluated on the basis of the return that they are able to generate on invested assets, with year-end bonuses given to the divisional managers who have the highest ROl figures. Operating results for the company's office products division for the most recent year are as follows: The company had an overall ROI of 13.0% last year (considering all divisions). The office products division has an opportunity to add a new product line that would require an additional investment in operating assets of $9,250,000. The cost and revenue characteristics of the new product line per year would be as follows: Nequired: 1. Compute the office products division's ROl for the most recent year, also compute the ROl if the new procluct line were added. (Do not round intermectiate calculations. Round "Percentage" answers to 2 decimol places, (A.e., 0.1234 should be considered as 12.34%) 2. If you were in Dell Havas's posibon, would you be inclired to accept or reject the new product line? Accept Reject 3. This part of the question is not part of your Connect assignment. 4. Suppose that the company views a return of 12.0 s on imvested assets as being the minimum that any division should earn and that performance is evaluated by the Ri approach a. Compute the office products division's Ri for the most recent year: also compute the Ri as it would appear if the new product line were odded

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