A Norwegian company specialising in the production of bottled water. The company operates through three divisions that all process and bottle their 'own-source' drinking water, which is then sold through a network of retailers.

The following is summarised data, for the past financial year, in respect of the 3 autonomous water-processing and bottling divisions:

Division	X	Y	Z	Total
Revenue:	,000	,000	,000	,000
Fees received	3600	4200	9000	16800
Less variable costs	936	1134	2790	4860
Contribution	2664	3066	6210	11940
Less fixed costs	1872	2184	4804	8860
Operating profit	792	882	1406	3080
Less interest costs on long-term debt at 10%				360
Profit before tax				2720
Less income tax expense Profit for the year				816
Profit for the year				1904
Assets
Non-current assets	2000	5000	6600	13600
Current assets	1600	1800	2000	5400
Total assets	3600	6800	8600	19000
Equity and liabilities:
Share capital				5000
Retained earnings				8800
Total equity				13800
Non-current liabilities				3600
Long-term borrowings				3600
Total non-current liabilities				0
Current liabilities	160	480	960	1600
Total current liabilities	160	480	960	1600
Total liabilities				5200
Total equity and liabilities				19000

The company operates with a target return on capital of 12% per annum. At present the performance of each division and its management is assessed against this target using return on investment (ROI) based on total assets and residual income (RI).

the company does not allocate its long-term borrowings to the three divisions, and it pays 30 percent corporation tax. Furthermore, the market value of the company's equity capital is 18 million, and the company's cost of equity is 15%. The market value of Hull plc's long-term borrowings is the same as its book value.

Required

(a) From the above data calculate the Return on Investment (ROI), residual income (RI) and economic value added (EVA) for:

1. each of the three divisional managers;
2. the financial viability for each of the three divisions. Briefly compare and comment on the performance of the three divisions