East Mullett Manufacturing earned net income last year as shown in the following income statement:
Sales ................. $531,250
Cost of goods sold ........... 280,000
Gross margin .......... $251,250
Selling and administrative expense ...... 187,500
Operating income ......... $ 63,750
Less: Income taxes (@ 40%) ....... 25,500
Net income ........... $ 38,250
Total capital employed equaled $400,000. East Mullett’s actual cost of capital is 8 percent.

Required:
Calculate the EVA for East Mullett.