PLEASE INCLUDE ALL CALCULATIONS. NOT JUST ANSWERS. THANK YOU.

Three Bears Inc. produces various components used by many industries in the production of medical equipment. They currently have two divisions - Papa Bear which manufactures components for large scale medical equipment such as MRI and X-ray machines; and Momma Bear which manufactures components for medium scale medical equipment such as centrifuges and ultrasound machines. They are preparing to open their third division - Baby Bear Division which will produce manufacturing components for small scale medical equipment such as microscopes and sphygmomanometers. Three Bears, provided the following income statement for its current divisions: Papa and Momma Segment Margin Income Statement for Three Bears Papa Momma Total Revenue $1,000,000 $620,000 $1,620,000 Variable expenses Product 520,000 310,000 830,000 Selling and administrative 80,000 50,000 | 130,000 Contribution margin 400,000 260,000 660,000 Less traceable fixed costs 60,000 20,000 | 80,000 Segment margin $340,000 $ 240,000 $580,000 Common fixed costs | 270,000 Net operating income $310,000 Included in traceable fixed costs is $50,000 of depreciation expense for Papa and $28,000 for Momma. The actual weighted-average cost of capital for Three Bears is 8% however the company's required rate of return is 10%. Its tax rate is 40%. The Papa division balance sheet on January 1 showed $1,300,000 of assets ($300,000 current and $1,000,000 long-term) and $920,000 of liabilities ($320,000 current and $600,000 long-term). The Momma division reported $950,000 of assets ($250,000 current and $700,000 long-term) and $550,000 of liabilities ($400,000 current and $150,000 long-term). At the end of the year, Papa's had assets of $1,650,000 ($400,000 current and $1,250,000 long term) and liabilities of $600,000 ($300,000 current and $300,000 long term). Momma's assets at the end of the year were $780.000 ($110.000 current and $670,000 long term and liabilities of $590,000 ($380,000 current and $210,000 long term). The division manager for Papa has had an average Rol of 25% for the past 4 years and the manager of Momma is only in her second year as manager of the Little Division but last year had an Rol of 32%. In evaluating residual income for the overall division, the company uses average asset for the amount invested. Part A: For each Division compute: 1. Sales Margin 2. Asset Turnover 3. ROI 4. RI 5. EVA 6. Which division is performing better? Explain