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know headquarters wants us to add that new product line," said Dell Havasi, manager of Billings Company's Office Products Divisio 3ut I want to see the numbers before I make a decision. Our division's return on investment (ROI) has led the company for three ars, and I don't want any letdown." illings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated using ROI, with year-end )nuses given to the divisional managers who have the highest ROIs. Operating results for the company's Office Products Division fc is year are given below: Sales Variable expenses Contribution margin Fixed expenses YJet operating. income )ivisional average operating assets e company had an overall return on investment (ROI) of 18.00% this year (considering all divisions). Next year the Office Products 'ision has an opportunity to add a new product requiring $2,350,000 of additional average operating assets. The annual cost and enue estimates for the new product would be: ales ariable expenses ixed expenses uired: $ 9,396,500 65 of sales $ 2,564,875 :ompute the Office Products Division's margin, turnover, and ROI for this year. 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. 4. If you were in Dell Havasi's position, would you accept or reject the new product? 5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product? 6. Suppose the company's minimum required rate of return on operating assets is 15% and 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 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 6A to Required 1 to Required 6D Required 5 Required 4 3 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.