Aeradual Income and tavestment Deciscos Alard, Lne. ptesented two vears of data forits frozen foods Dwisein and its Canned foods Diveron Froren foods Divivinat Canned Division: Ar the end of Yeat 2, the matiagy of the Canned Divison a conceined abeut the dovton's performance. As a result, he is cansodereng the cppertunicy to invect if tiwo expects that year 7 data will sernsin unchanged. The expected operating incomes and the outiay requeted for each inwstbent are as followel inwested to earn the compary's riniture recuired rate of retarn, 7 percent. invested to earn the comgany's minimum required iate of return, 7 percent. Required: 1. Campute the residual income for each of the opportunities. (Round to the nearest doular.) 2. Compute the divisional residival income for each of the following foul atternatives: (Round to the nearest dollar.) a. The vuice box is added b. The frut pouch is added. c. Both anversments are added. 5 d. Neither investment is made, the statis quo is inaintained. Assuming thet divistonal managers are evafuated and rewarded on the bass of residual income, which alternatwe do you think the divisional manage wil choose? 3. Assuming that management acts as you recommend in reduirechnt? compute the change in profit (foss) from the divesidnal manager's investment decition. ROI, Margin, Turnover Allard, Inci, presented two years of data for its frozen Foods Division and its Canned Foods Division. Frozen Foods Division: Recuuired: Round the ROI and margin percentages to two decimal places (for example, enter the decimal, 10555 as "10.56" percent). Round the turnover ratio to two decimal places. 1. Compute the ROl and the margin and turnover ratios for each year for the froten foods Division. 2. Compute the ROl and the margin and turnover ratios for each year for the Canned Foods Division. Canned Foods Division