Present New Line Total ROI % % % 2. If you were in Grenier's position, would you accept or reject the new product line? Accept Reject 3. Why do you suppose headquarters is anxious for the East Division to add the new product line? Adding the new line would decrease the company's overall ROI. Adding the new line would increase the company's overall ROI. 4. Suppose that the company's minimum required rate of return on operating assets is 12% and that performance is evaluated using residual income. a. Compute East Division's residual income for last year; also compute the residual income as it would appear if the new product line were added. Present New Line Total Residual income b. Under these circumstances, if you were in Grenier's position, would you accept or reject the new product line? Accept O Reject