Calculating Economic Value Added East Mullett Manufacturing earned operating income last year as shown in the following income statement: Sales Cost of goods sold $3,750,000 2,250,000 $1,500,000 1,200,000 300,000 120,000 $180,000 Gross margin Selling and administrative expense Operating income Less: Income taxes (@ 40%) Net income At the beginning of the year, the value of operating assets was $1,600,000. At the end of the year, the value of operating assets was $1,400,000. Total capital employed equaled $1,200,000. East Mullett's actual cost of capital is 4%. Required: Calculate the EVA for East Mullett Manufacturing