Exercise $19-27($Static$)$ Return on Investment; Residual Income; EVA ${?}^{o+}[$LO $19-1,19-2,19-3]$

Heather Smith Cosmetics $(HSC)$ manufactures a variety of products and is organized into three divisions $($investment centers$)$: soap products, skin lotions, and hair products. Information about the most recent year's operations follows. The information includes the value of intangible assets, including research and development, patents, and other innovations that are not included on HSC$\text{'}$s balance sheet. Were these intangibles to be included in the financial.statements $($as they are for EVA ${?}^{}),$ the increase in the balance sheet and the increase in after$-$tax operating income would be as given below:

$\backslash$table$[[,$Division,$\backslash$table$[[$Operating$],[$Income$]],\backslash$table$[[$Average Total$],[$Assets$]],\backslash$table$[[$Value of$],[$Intangibles$]],\backslash$table$[[$Intangibles$\text{'}],[$Effect on$],[$Income$]]],[$Soap products,,$$3,250,000,$$$60,000,000,$$$1,500,000,$$$1,000,000$