"I 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 (ROI) has led the company for three 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 Office Products Division for the most recent year are given below: Office Products Division Sales $20,280,000 Variable expenses 12,865,340 Contribution margin 7,414,660 Fixed expenses 5,690,860 Net operating income $1,723,800 Divisional operating assets $5,200,000 The company had an overall return on investment (ROI) of 15% last year (considering all divisions). The Office Products Division has an opportunity to add a new product line that would require an additional investment in operating assets of $3,390,000. The cost and revenue characteristics of the new product line per year would be: Sales $10,170,000 Variable expenses 60% of sales Fixed expenses $3,274,740 Requirement 1: Compute the Office Products Division's ROI for the most recent year; also compute the ROI as it would appear if the new product line is added.(Round interim calculations and final answers to 2 decimal places. Omit the "%" sign in your response.) ROI Present % New Line % Total for company % Requirement 4: Suppose that the company's minimum required rate of return on operating assets is 15% and that performance is evaluated using residual income. (a) Compute the Office Products Division's residual income for the most recent year; also compute the residual income as it would appear if the new product line is added. (Omit the "$" sign in your response.) Residual income Present $ New Line $ Total for company $