Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost of capital of 20 percent. Selected financial information (in thousands of dollars) for the first year of business follows.

	East			West
Sales revenue	$	4,800		$	8,800
Income		865			960
Investment (beginning of year)		1,950			3,800
Current liabilities (beginning of year)		390			390
R&D expendituresa		1,450			1,350

^aR&D is assumed to benefit two periods. All R&D is spent at the beginning of the year.

Required:

a-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 o West