Question: Sarved ap. 13-14, 16 Universal Electronics, Inc. (UET), which started operations one year ago, has two divisions: Consumer and Commercial. Both divisions invest heavily in
Sarved ap. 13-14, 16 Universal Electronics, Inc. (UET), 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 $58,000 $91, eee Divisional income 11,680 13,200 Divisional investment 36,500 41,250 Current liabilities 4,600 4,400 RD 4,600 4,600 Required: Evaluate the performance of the two divisions assuming UE uses residual income (Enter your answers in dollars rounded to 1 decimal place.) RI of Consumer division RI of Commercial division Which division performed better
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