(Economic Value Added) K.Johnson, Inc.'s managers want to evaluate thefirm's prior-year performance in terms of its contribution to shareholder value. This pastyear, the firm earned an operating income return on investment of 12 percent, compared to an industry norm of 11 percent. It has been estimated that thefirm's investors have an opportunity cost on their funds of 14 percent, which is the same as thefirm's overall cost of capital. Thefirm's total assets for the year were $ 300 million. Compute the amount of economic value created or destroyed by the firm. How does your finding support or fail to support what you would conclude using ratio analysis to evaluate thefirm's performance? Assume that the firm has no debt.