Problem 10-28 Ashton Corporation recently announced a bonus plan to reward the manager of its most profitable division. The three divisional managers are to decide which performance measure will be used to evaluate profitability. Ashton Corporation requires a 10% minimum return on investment. The following information is available for the year just ended.

Division		Gross Book Value of Assets		Divisional Operating Income
Bristol		$800,000		$94,960
Darden		752,800		91,360
Gregory		440,000		57,800

(a) Calculate return on investment. (Round ROI to 2 decimal places, e.g. 5.12%.)

	Return on Investment
Bristol	%
Darden	%
Gregory	%

Which division performed the best? (b) Calculate residual income. (If the amount is negative then enter with a negative sign preceding the number e.g. -5,125 or parenthesis. e.g. (5,125).)

	Residual Income
Bristol	$
Darden	$
Gregory	$

Which division performed the best? (c) Assume that Ashtons weighted-average cost of capital is 6% and its tax rate is 21%. Calculate economic value added. (If the amount is negative then enter with a negative sign preceding the number e.g. -5,125 or parenthesis. e.g. (5,125).)

	Economic Value Added
Bristol	$
Darden	$
Gregory	$

Which division performed the best?