Problem #3 (3 points) Mon fett Manufacturing earned operating income last year as shown in the following income statement $620,000 316,000 $304,000 219,000 $ 85,000 Sales Cost of goods sold Gross margin Selling and administrative expense Operating income Less: Income taxes (at 40%) Net income S 51,000 At the beginning of the year, the val o operating assets was $336,000. Monfett ue of operating assets was $263,000. At the end of the year, the value ett Manufacturing requires a minimum rate of return of 15% 000 and actual cost of capital is 6%. Calculate the following: of Total capital employed equal $880, A. Residual income B. EVA where EVA = Net income-(Total capital employed X Cost of capital)