Campbell Soup Company (CPB) is a U.S. manufacturer and marketer of high-quality, branded food and beverage products. In 2018, CPB announced its vision to be a leading snacks and simple meals company, with a portfolio of best-in-class products and brands, and to pursue increased, multi-year cost savings initiatives. CPB provides selected financial data for fiscal year 2019: 377 From the Income Statement (In million dollars) FY 2018 FY 2019 Net sales $ 7,890 $ 8,700 Costs and expenses Cost of goods sold 4,734 5,394 Sales and marketing 902 Administrative expenses 654 R&D expenses 111 110 Other general expenses 457 422 Total cost and expenses 6,707 7,482 Operating income $ 1,184 $ 1.218 From the 2019 Balance Sheet (In million dollars) Beginning Ending Cash $ 319 $ 226 Accounts receivable, net 605 783 Raw materials inventory 244 Finished goods inventory 525 Other current assets 74 Plant assets, net of depreciation 2,454 3,233 Intangible assets, net of amortization 3,233 8,776 Other assets 139 224 Total assets $ 7,726 $14,161 855 550 589 86 4. (5 points) CPB is using return on investment (ROI) to evaluate its division managers. a. Briefly explain the underinvestment problem with ROI. b. Briefly explain ONE advantage and ONE disadvantage of residual income (RI) over ROI c. Briefly explain ONE advantage and ONE disadvantage of economic value added (EVA) over RI