Question: If possible please solve the ones that are wrong and show the steps. completion Return to question Problem 11-18 Return on Investment (ROl) and Residual
completion Return to question Problem 11-18 Return on Investment (ROl) and Residual Income L011-1, LO11-2] know headquarters wants us to add that new product line," said Dell Havas, 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 in has led the company for three years, and I don't want any letdown vestment (ROI Billings Company is a decentralized basis of ROi with year-end bo for the companys Office Products Division for this year are given below ous divisions. The divisions are evaluated on the nuses given to the divisional managers who have the highest ROls. Operating results Contribution margin Fixed expen e Net operating income Divisional average operating asset $ 22,600, 000 14,157, 400 8, 442, 600 6,160,0o0 2,282,600 $4,520,000 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 $2,450,000. The cost and revenue characteristics of the new product line per year would be: $9, 800, 000 Do you want to c
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