XLS 10-28 Evaluating segment performance (LO 3, 4) Mims 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 prof- itability. Mims 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 Ashton $900,000 $99,000 Drye 820,000 94,300 Poole 480,000 57,600 Required a. Based on return on investment, which division performed the best? 0. Based on residual income, which division performed the best? C. Assume that Mims Corporation's weighted-average cost of capital is 8% and its tax rate is 30%. Based on economic value added, which division performed the best? d. What measure will the division managers select? What should the upper management of Mims Corporation do