Please clearly show/explain all work.

Using data from case Exhibit 8 below, calculate the following items

2017 EVA for the North American Dermatology division

2017 EVA bonus payout for a manager earning $300,000, assuming that the managers bonus is based 100% on the divisions EVA

2018 EVA and estimated bonus payout for the same manager, assuming that Vyaderm profits fall back to historical levels and the EVA improvement goal remains constant

Based on your analysis, what would you recommend to Mr. Vdrine?

Vyaderm Pharmaceuticals: The EVA Decision Exhibit 8 North American Dermatology Financial Data for EVA Calculation ($ 000s except bonus) Divisional EVA Calculation: Actual EVA EVA Improvement Goal EVA Target EVA Interval Profit & Loss: Income before following items: Research & Development Expense Consumer Advertising Expense Goodwill Impairment Net Income Before Tax Current Year's Income Tax Payments Balance Sheet: Net Operating Assets Capital Charge for EVA Purposes Divisional Manager's Bonus: Base Salary Bonus Target Bonus Payout 2013 $24,694 12,487 34 0 $12,173 (4,261) $66,949 2014 $31,512 14,610 38 0 $16,864 (5,902) $79,000 2015 $36,584 17,094 41 0 $19,449 (6,807) $93,220 2016 $3,745(a) $42,545 20,000 45 0 $22,500 (7,875) $110,000 $300,000 na $90,000 101-019 2017 $2,150 $5,895 $12,000 $92,550 39,000 50 10,000 $43,500 (18,725) $135,000 11% $300,000 60%