Back Mountain Industries (BMIl) 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: Sales revenue Income Investment (beginning of year) Current liabilities (beginning of year) R&D expenditures $1,600 S6,200 570 3,200 4,200 260 700 410 260 800 R&D is assumed to benefit two periods. All R&D is spent at the beginning of the year Required -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.) esidua Income Divis East West a-2. Which division had the better performance? O East West