Using the charts and formulas provided to answer the following questions:

Formulas: Residual Income: EBIT -.(Required Rate of Return*Average Op Assets) EVA - WACC given: PAT-(WACC*Capital Employed) ROI = Margin * Turnover = EBIT/ Average Op Assets ARR = Average annual after tax accounting profit (Annual Cash flow- Depreciation)/Net Initial Investment Payback= NII/annual cash flows PAT = PBT -(PBT*TR) = PBT * (1-TR) Where: PAT= Profit after tax, PBT= Profit before tax, TR=tax rateNantucket Company has two divisions that report on a decentralized basis. Their results for 2014 were as follows: Helmet Ball Sales $150,000 $300,000 Operating Income $ 15,000 $ 45,000 Average Assets $ 75,000 $150,000 Capital Employed $ 90,000 $200,000 Weighted average cost of capital 12% 12% Required: Assuming Nantucket has a 30% tax rate, compute the following amounts for each division (show all workings): a. Return on investment (ROI). b. Residual income if the desired rate of return is 20 percent. c. EVA. (1. Turnover. e. Margin