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			West
Sales revenue	$	2,400		$	7,800
Income		690			810
Investment (beginning of year)		4,800			5,800
Current liabilities (beginning of year)		340			340
R&D expendituresa		1,200			1,100

^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.)