Stella Manufacturing makes fashion products and competes on the basis of quality and leading-edge designs. The company has two divisions, clothing and cosmetics Stella has $2.500.000 invested in assets in its clothing division Ah operating income from sales of clothing this year ie $550,000. The cosmetics division has $11,000,000 invested in assets and an afer-tex operwing income this year of $1,650,000. The weighted average cost of capital for Sea is 0% The CEO of Stala has told the manager of each divsion that the division that "performs best this year will get a bonus Read the requirements. Requirement 1. Calculate the ROI and residual income for e Begin by selecting the formula to calculate ROI, then comput Clothing Division Cosmetica Division Requirements 1. Caloriate the ROI and residual income for each division of Stela Manufacturing, and briety explain which manager will get the bonus. What are the advantages and disadvantages of ch 2. The CEO of Stela Manufacturing has recently heard of another measure similar to residual income caled EVA The CEO has the accountant calculate adjusted incones for clothing and cosmetics, and finds that the aduated ater-tax operating incomes are $401,400 and $2,067,200, actively Also, the dothing division has $270.000 of current labies, while the cosmetics division has only $120.000 of cument labies Using the preceding information. calculate the EVA for each division and discuss which division manager will get the bonus 3. What nonfinancial measures could Stella use to evaluate divisional performanc advantages of each me Print Done