Back Mountain Industries (BMI) has two divisions: East and West. BM 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 $2,600 $8,200 Income 760 870 Investinent (beginning of year) 5.200 6,200 Current liabilities (beginning of year) 360 360 R&D expenditures 1,300 1,200 R&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.) Divisions Residual Income East West