I know headquarters wants us to add that new product line," said Fred Holloway, manager of Kristi Products' West Division. "But I want to see the numbers before I make a move. Our division's return on investment (ROI) has led the company for three years, and I don't want any letdown." Kristi Products is a decentralized wholesaler with four autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to divisional managers who have the highest ROI. Operating results for the company's West Division for the last year are given below:

Sales............................ $21,000,000
Variable expenses............. 13,400,000
Contribution margin.......... 7,600,000
Fixed expenses................ 5,920,000
Net Operating Income........ $ 1,680,000
Divisional Operating Assets. $ 5,250,000

The company had an overall ROI of 18% last year (considering all divisions). The company's West division has an opportunity to add a new product line that would require an investment of $3,000,000. The cost and revenue characteristics of the new product line per year would be as follows:

Sales........................... $9,000,000
Variable expenses............ 65% of sales
Fixed expenses............... $2,520,000

Compute the West Division's ROI for last year; also compute the ROI as it would appear if the company duplicated the same performance as last year and also added the new product line.