ser 11 Pre-Built Problems know headquarters wants us to add that new product line." said Dell Havasi, manager of Billings Company's Office Products Division "But I want to see the numbers before I make any move our division's return on investment (Rory has led the company for three years. and I don't want any letdown Bilings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of rol with year end bonuses given to the divisional managers who have the highest Rols Operating results for the companys Office Products Division for this year are given below. ON Sales Variable expenses Contribution margin Fixed expenser Net operating Income DEVELonal average operating assets $ 22,900,000 14,213,400 8,586,60 5,205,eee B $4,56e,eee The company nad on overall return on investment (ROI) of 1700% 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 average operating assets by $2,484,500 The cost and revenue characteristics of the new product line per year would be Sales Variable expenses Fixed expenses 39,942,400 65% of sales $2,602,240 Required: 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 line by itself 3. Compute the ofice 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 Havas's position, would you accept or reject the new product line? 5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product line? 6 Suppose that the company's minimum required rate of return on operating assets is 13% and that performance is evaluated using