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	$	38,000			$	61,000
Divisional income		6,930				7,425
Divisional investment		31,500				33,750
Current liabilities		2,600				2,400
R&D		2,600				2,600

Required:

Evaluate the performance of the two divisions assuming UEI uses return on investment (ROI).

ROI of Consumer division ROI of Commercial division Which division performed better