Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ? 5 value: 3.50...

? 5 value: 3.50...

70.2K

Verified Solution

Question

Accounting

?
image
image
image
5 value: 3.50 points 1 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 ROls. Operating results for the company's Office Products Division for the most recent year are given below Sales $ 22.835,000 14.297.200 8.537 800 Contribution margin Fixed expenses 6,190,000 $ 2,347.800 S 4,000,000 Net operating income The company had an overall return on investment(ROI) of 17 00% 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 $2,755,000. The cost and revenue characteristics of the new product line per year would be $ 9,915,000 65% of sales $ 2,607,450 Variable expenses

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students