finch sailing is a manufactuer of sailboat accessories. Finch has two divisions that report on a decentralized basis. their results for the year were as follows

winches cleats

sales $150,000 $300,000

income $15,000 $45,000

asset base $75,000 $150,000

weighted avg cost 8% 8%

of capital

complete the following amount for the winch division

a) residual income if the desired rate of return is 12%

b) EVA