Universal Electronics, Inc. (UEI), which started operations one year ago, has two divisions: Consumer and Commercial. Both divisions invest heavily in R&D, which is assumed to benefit five years. R&D spending is made uniformly throughout the year. UEI has a cost of capital of 11 percent. Selected financial information for the two divisions (in thousands of dollars) for the year just completed follows.

Consumer Commercial

Sales revenue $ 22,000 $ 37,000

Divisional income 3,850 3,885

Divisional investment 27,500 27,750

Current liabilities 1,000 800

R&D 1,000 1,000

Required:

Evaluate the performance of the two divisions assuming UEI uses residual income. (Enter your answers in dollars rounded to 1 decimal place.)