The following excerpt is from Coca-Cola Company's 2014 annual report filed with the SEC:
Management evaluates the performance of our operating segments separately to individually monitor the different factors affecting financial performance. Our Company manages income taxes and certain treasury related items, such as interest income and expense, on a global basis within the Corporate operating segment. We evaluate segment performance based on income or loss before income taxes.
Below are selected segment data for Coca-Cola Company for the 2014 and 2013 fiscal years. Dollar amounts are in millions.

Required
a. Compute the ROI for each of Coke's geographical segments for each fiscal year. Which segment appears to have the best performance during 2014 based their ROIs? Which segment showed the most improvement from 2013 to 2014?
b. Assuming Coke's management expects a minimum return of 30 percent, calculate the residual income for each segment for each fiscal year. Which segment appears to have the best performance based on residual income? Which segment showed the most improvement from 2013 to 2014?
c. Explain why the segment with the highest ROI in 2013 was not the segment with the highest residual income.
d. Assume the management of Coke is considering a major expansion effort for the next five years. On which geographic segment would you recommend Coke focus its expansion efforts? Explain the rationale for your answer.

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Eurasla & Latin North AmericaPaclflc Europe America 2014 Flscal Year Net operating revenues Income before taxes Identifiable operating assets $2,730$5,536 $4,657 $21,479 $5,746 2,447 2,448 3,358 2,42633,066 1,793 0 1,084 1,298 2,852 2,316 2013 Flscal Year Net operating revenues Income before taxes Identifiable operating assets $2,763$5,334 $4,939 $21,590 $5,869 2,432 2,478 3,731 2,91833,964 1,922 2 2 1,087 1,273 2,859 2,908 0