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Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost of...

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Accounting

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Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost of capital of 25 percent. Selected financial information In thousands of dollars) for the first year of business follows. East Went Sales revenue 53,800 $7,800 Income 690 810 Investment (beginning of year) 1,700 2,800 Current liabilities (beginning of year) 340 340 RAD expenditure 1,200 1,100 "R&D is assumed to benefit two periods. All R&D is spent at the beginning of the year Required: 3-1. Evaluate the performance of the two divisions assuming BMI uses economic value added. (Enter answers in thousands of dollars. Round your answers to 1 decimal place.) EVA Divisions East West a-2. Which division had the better performance? East West

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