Sales Variable expenses Contribution margin Fixed expenses Net operating Incone Divisional average operating assets $ 23,400,000 13,515,400 7,884,600 5,980,000 $ 1.994,600 $5,350,000 The company had an overall return on investment (ROI) of 16.00% this year (considering all divisions). Next year the Office Products Division has an opportunity to add a new product line that would require an additional investment that would increase average operating assets by $2.875,000 The cost and revenue characteristics of the new product line per year would be Sales Variable expenses Fixed expenses 39,209,000 65% of sales $2.540,400 ontos Required: 1 Compute the once Products Division's ROI for this year 2 Compute the Office Products Division's ROI for the new product line by itself 3. Compute the Office Products Division's Rol for next year assuming that it performs the same as this year and adds the new product tine 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 otce Products Division to add the new product line? 6 Suppose that the company's minimum required rate of return on operating asset to and that 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 line by itself Compute the once Products Division's reliquat income for next year assuming that performs the same as this year and adds the new product line d Using the residual income approach, if you were in Dell Havest's position would you accept or reject the new product line? Complete this question by entering your answers in the tabs below. Be to Req4 Ros Re6 to 6 RO 1. Compite the Office Products Division ROI for this year 2. Compute the Office Products Division's Rol for the new product line by itse 3. Compute the once Products Division's Rol for next year astuming that it performs the same as this year and adds the new oroduct line (bo not found witrectal calonan on your was to determal place) 1. ROOM 2. REX to how wodu by se for at Rog