Power Zone is a newly listed health and fitness group. The group operates three centres in Singapore. Each centre offers fitness programmes and personal training to clients. The centres are located in Clementi, Orchard and Bedok. The following information about the centres is available: (1) Summary financial data for Power Zone for the year ended 31 Dec 202X. (2) Power Zone defines Residual Income (RI) for each centre as operating profit minus a required rate of return of 12% of the total assets of each centre. (3) At present Power Zone does not allocate the long-term borrowings of the group to the three separate centres. (4) Power Zone has set a target Return on Investment (ROI) of 20%. (5) Due to its recent listing on the stock exchange, Power Zone has to be accountable to a wider range of stakeholders. As such, the group is contemplating the adoption of a Value Based Management ("VBM") approach. (6) The marketing director made the following statement at a recent board meeting. 'The group's success depends on the quality of service provided to our clients. In my opinion, we need only concern ourselves with the number of complaints received from clients during each period. This is the most important measure for our business. The number of complaints received from clients is a perfect performance measure. As long as the number of complaints received from clients is not increasing from period to period, we can be confident of our future prospects." (a) Evaluate the relative financial performance of the three centres using ROI and RI. (b) In conjunction with the potential adoption of a VBM approach, Power Zone is also assessing the possibility of using Economic Value Added ("EVA"). Appraise the suitability of Power Zone using EVA for performance measurement and reward. (10 marks) (c) Critique the statement made by the marketing director. (14 marks)