Exercise 14-30 (Static) Comparing Business Units Using Economic Value Added (EVA) (LO 14-4) 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. Sales revenue East $1,000 Income 200 West $5,000 390 2,000 Current liabilities (beginning of year) 200 3,000 200 500 400 Investment (beginning of year) R&D expenditures *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 economic value added (EVA). (Enter answers in thousands of dollars. Round your answers to 1 decimal place.) Divisions EVA East West a-2. Which division had the better performance? East West TB MC Qu. 13-47 (Static) Pablo Company has budgeted production... Pablo Company has budgeted production for next year as follows: Quarter Production in units First Second Third Fourth 60,000 80,000 90,000| 70,000 Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 30,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be: