Sales Variable expenses Direct fixed expenses Assets Required rate of return Weighted average cost of capital Tax rate Nashville $5.065.000 2,067,000 2.067.000 4,000,000 14% Knoxville $8.089,000 4.807,000 2.422.000 5.000.000 14% 89 30% Memphis $2,059,000 1.005.000 802.000 1,600,000 14% 8% 30% 8% 30% (a) Your answer is correct. . Calculate the residual income for each of the three stores. (If the residual income is a loss then enter with a negative sign preceding the number eg.-15,000 or parenthesis.e.g. (5,125).) Knoxville Nashville 371000 Memphis 28000 Residual income $ 160000 $ e Textbook and Media Attempts: 1 of 3 used (b) Your answer is correct. The corporate office is giving the stores the option of purchasing a new inventory management system. The new system will cost the stores $116,000; they can expect a $15,300 increase in their annual segment margins. Calculate the residual income using the new inventory system (If the residual income is a loss then enter with a negative sign preceding the number eg.-15,000 or parenthesis.e.g. (5,125).) Residual Income Nashville $ 370,060 Knoxville $ 159,060 Memphis $ $ 27,060 If store managers are evaluated based on residual income, which stores will invest in the new inventory management system? Nashville and Knoxville v e Textbook and Media Attempts: 2 of 3 used (c) What is the EVA of the new inventory management system? EVA $ e Textbook and Media Assistance Used e Textbook Save for Later Attempts: 0 of 3 used Submit