Major Corporation operates a wholesale electrical supply company with two locations. Each location is evaluated as an investment center. Selected results from the latest year are as follows: Location #1 Location #2 Sales $600,000 $800,000 Variable expenses 460,000 660,000 Direct fixed expenses 100,000 80,000 Average Assets 890,000 780,000 Current liabilities 120,000 180,000 Required rate of return 10% 12% Weighted average cost of capital 8% 6% Tax rate 24% 28% Required: a. Calculate the residual income for Location #1. b. Calculate the EVA for Location #2.