Required: 1. Compute the Ofrice Products Division's margin, tumover, and ROI for this yoat. 2. Compute the Office Products Division's margin, turnover, and ROI for the new product line by itself 3. Compute the Office Products Division's margin, turnover, and ROI for next year assuming that it performs the same as this year and adds the new product line. 4. If you were in Dell Havasi's position, would you accept or reject the new product line? 5. Why do you suppose headquarters is anxious for the Omice Products Division to add the new product line? 6. Suppose that the company's minimum required rate of roturn on operating assets is 13% and that performance is evaluated using residuat income. a. Compute the Office Products Division's residual income for this year. b. Compute the Ofice Products Division's residuat income for the new product line by itselk. c. Compute the Oifice Products Oivision's residual income for next year assuming that it performs the same as this year and adds the new product line. d. Using the residuel income opproach, if you were in Dell Havasis position, would you accept or reject the new product line? 6. Suppose that the company's minimum required rate of return on operating assets is 13% and that perforn 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 line by Itself. c. Compute the Office Products Division's residual income for next year assuming that it performs the same adds the new product tine. Complete this question by entering your answers in the tabs below. Why do you suppose headquarters is anxious for the office Products Division to add the new product line? 1. Compute the office Products Division's margin, turnover, and ROI for this year: 2 Compute the office Products Olvision's margin, tumover, and nol for the new product line by itself. 3. Compute the Office Products Diviston's margin, tumover, and Rol for next year assuming that it performs the same as this year and adds the new product line. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Complete this queation by entering your answers in the tabs below. If you were in Dell Havasi's position, would you accept or refect the new product line? 4 know hoadquarters wants us to add that new product line," said Dell Havasi, managor of Billings Comparys Ortice Products threc years, and I don't want any letdown:" Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to the divisional managers who have the highest ROIs. Operating results for the company's Ortice Products Division for this year are given below: The company had an overall return on investment (RO) of 16.00% this year (considering all divisions). Next year the Omce Products Division has an opportunity to add a new product line that would require an additional investment that would increase averege perating assets by $3,938,000. The cost and revenue characteristics of the new product line per year would be- Complete this question by entering your answers in the tabs below. Using the residual income approach, if you were in Dell Havast's position, would you accept or reject the new product line
