Crane 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. Crane 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		$94,800
Drye		749,800		91,810
Poole		441,000		58,330

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

	Return on Investment
Ashton	%
Drye	%
Poole	%

Which division performed the best?

Poole Drye Ashton

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

	Residual Income
Ashton	$
Drye	$
Poole	$

Which division performed the best?

Drye Poole Ashton

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

	Economic Value Added
Ashton	$
Drye	$
Poole	$

Which division performed the best?

Poole Drye Ashton