ROI, RI, measurement of assets. Direct Sales Corporation is analyzing the implementa- tion of a bonus plan for its direct salespersons. Currently each salesperson has a target of net income of $5,000; if it is achieved, then a lump sum is paid. Each salesperson is provided with a company car, each car has a useful life of five years, and 20% of amortization is applied in the year of purchase. To test the idea, the General Manager estimated that the required rate of return of assets is 12%. He also obtained the 2009 data of three salespersons as follows:

REQUIRED ‘The General Manager has to select a method of bonus calculation that ranks the three salespersons without overlaps (having two or more salespersons showing the same performance), Identify the method for calculating profitability that the general manager selected, supporting your answer with appropriate calculations.LO1

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Gross Book Value Salesperson of the Car Year of Purchase of the Car Operating Income Eshrat $15,000 2008 $5,000 Faheem $15,000 2009 $5,000 Georgy $15,000 2007 $5,000