Mesldual Incorne and Investment Deoisions Allard, tnc., presented two years of data for its frozen Foods OMsion and its Canned Fosds Divisen. Frozen Foods Dlvision: Canned Divialon: At the end of Year 2, the manager of the Canned Division is concerned about the dwsion's peiformance, As a result, he is conuldering the opportunty bo invest in two independent projects, The first is juice boxes for elementary school children. The second is frut and vegoie pevehes for kids on the go. Waheut the investments, the division oxpects that Year 2 data will remein unchanged, The expected operaning incomes and the outlay required for each imeatment are an follows: invested to eam the company's minimum required rate of retum, 7 percent. 1. Compute the residual income for esch of the-opportunties. (Round to the nearest doliar.) Wite box residual incoene Fruit Pouch residus income 2. Compute the divislohak residuat income for each of the following four alternatives: (thound to the neareat dollar.) A. The julce bos is added b. The frut pouch is added 4 C. Both investments are added. 1 a. Neither imestment is reades the status que is muleraines 5 Assuming that divianal managers are evaluated and rewarded on the basis of reviduaf /ocome, which atternative do you think the aviponal maneger wis cheose? 3. Assuming that manapement acts as you recommend in requirement 2 , campute the change in profit (loss) frem the divional mahager's iovestment decilon. Was the correct decision made