Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost of capital of 15 percent. Selected financial information (in thousands of dollars) for the first year of business follows: East West Sales revenue $ 2,500 $ 8,000 Income 725 840 Investment (beginning of year) 5,000 6,000 Current liabilities (beginning of year) 350 350 R&D expendituresa 1,250 1,150 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 residual income. (Enter answers in thousands of dollars. Negative amounts should be indicated by a minus sign.) a-2. Which division had the better performance? multiple choice West East