Blossom 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. Blossom 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
Ashton	$800,000	$94,400
Drye	749,300	91,370
Poole	459,000	58,090

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

Which division performed the best?

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

Which division performed the best?

(c) Assume that Blossom Corporations weighted-average cost of capital is 6% and its tax rate is 22%. Calculate economic value added for each divison. (If the amount is negative then enter with a negative sign preceding the number, e.g. -5,125 or parentheses, e.g. (5,125).)

Which division performed the best?