Exercise 14-31 (Algo) Comparing Business Units Using ROI (LO 14-2) 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. UEl 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 $46, 000 $73,000 Divisional income 8, 710 9,555 Divisional investment 33,500 36, 750 Current liabilities 3, 400 3,200 R&D 3,400 3, 400 Required: Evaluate the performance of the two divisions assuming UEl uses return on investment (ROD). ROI of Consumer division % ROI of Commercial division % Which division performed better