ROL Margin Divisions FLNA QFNA NAB Latin america ESSA AMENA 76% 73% 8% 16% 8% Residual Income 31% $ 14,706.75 26% $ 2,247.50 11% $ 13,602.50 14% $ 5,739.50 12% $ 7,170.50 20% $ 4,292.75 18% iii. Residual Income: What does residual income tell management? Do any of the divisions fall short of management's expectations? How can you tell? iv. Allocation decision: If you were upper management (CEO of the whole corporation), and had excess funds to allocate among divisions, which division would you allocate those funds to and why? ROL Margin Divisions FLNA QFNA NAB Latin america ESSA AMENA 76% 73% 8% 16% 8% Residual Income 31% $ 14,706.75 26% $ 2,247.50 11% $ 13,602.50 14% $ 5,739.50 12% $ 7,170.50 20% $ 4,292.75 18% iii. Residual Income: What does residual income tell management? Do any of the divisions fall short of management's expectations? How can you tell? iv. Allocation decision: If you were upper management (CEO of the whole corporation), and had excess funds to allocate among divisions, which division would you allocate those funds to and why