Ashton Corporation recently announced a bonus plan to reward the manager of its most profitable division. The three divisional managers are to decide which performance measure will be used to evaluate profitability. Ashton Corporation requires a 10% minimum return on investment.

The following information is available for the year just ended.

Division	Gross Book Value of Assets	Divisional Operating Income
Bristol	$800,000	$94,620
Darden	741,000	91,700
Gregory	442,000	58,790

(a)Calculate return on investment.(Round ROI to 2 decimal places, e.g. 5.12%.)

Return on Investment
Bristol	%
Darden	%
Gregory	%

Which division performed the best?

DardenGregoryBristol

(b)Calculate residual income.(If the amount is negative then enter with a negative sign preceding the number e.g. -5,125 or parenthesis. e.g. (5,125).)

Residual Income
Bristol	$
Darden	$
Gregory	$

Which division performed the best?

DardenBristolGregory

(c)Assume that Ashtons weighted-average cost of capital is 8% and its tax rate is 24%. Calculate economic value added.(If the amount is negative then enter with a negative sign preceding the number e.g. -5,125 or parenthesis. e.g. (5,125).)

Economic Value Added
Bristol	$
Darden	$
Gregory	$

Which division performed the best?

DardenGregoryBristol