For 2012, the New Products Division of Tellis Company Had

question 71

Essay

For 2012, the New Products Division of Tellis Company had operating income of $7,000,000 and operating assets of $38,800,000. Tellis has set a target return on investment (ROI) of 14% for each of its divisions.
The New Products Division has developed a potential new product that would require $8,500,000 in operating assets and would be expected to provide $1,400,000 in operating income each year. Assuming that the new product is put into production, calculate the division's ROI. Would the new product increase or decrease the division's ROI?

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Definitions:

Procedural Memory

A type of long-term memory for performing certain types of tasks without conscious awareness of these previous experiences.

Measuring Intelligence

refers to the methodologies and tools used to assess an individual's intellectual abilities relative to a statistical norm.

Central Nervous System Functioning

Involves the brain and spinal cord's role in receiving, processing, and responding to information from the body and external environment.

Reasoning Ability

The capacity to think logically, solve problems, and make rational decisions.