Karl has decided to retain a management reserve on a $400,000 project that includes a $60,000 profit. At the completion of the project, Karl finds that the management reserve fund contains $40,000. Should Karl book the management reserve as excess profits (i.e., $100,000),or should he just book the target profit of $60,000 and let the functional managers “sandbag” on the slush fund until it is depleted?