Required: 1. Compute the East Division's ROI for last year; also compute the ROI as it would appear if the new product line were added. (Do not round intermediate calculations. Round your final answer to the nearest whole number.) 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 increase the company's overall ROI. Adding the new line would decrease the company's overall ROI. 4. Suppose that the company's minimum required rate of retum on operating assets is 11% and that performance is evaluated using residual income. 4. Suppose that the company's minimum required rate of return on operating assets is 11% 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. b. Under these circumstances, if you were in Grenier's position, would you accept or reject the new product line? Accept Reject