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Please solve and please show all steps including the first step, using calculating the residual income. Thank you for your help! Back Mountain Industries (BMI)

image text in transcribedPlease solve and please show all steps including the first step, using calculating the residual income. Thank you for your help!

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. aR&D is assumed to beneflt 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. (Enter answers in thousands of dollars. Round your answers to 1 decimal place.) a-2. Which division had the better performance? West East

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