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	$	34,000			$	55,000
Divisional income		6,300				6,450
Divisional investment		30,500				32,250
Current liabilities		2,200				2,000
R&D		2,200				2,200

Required:

Evaluate the performance of the two divisions assuming UEI uses economic value added (EVA).