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2. Use the data pertaining to the Snack Food Division, as shown in Exhibit TN-1, to calculate: a. The economic profit for the division for

2. Use the data pertaining to the Snack Food Division, as shown in Exhibit TN-1, to calculate:

a. The economic profit for the division for 2000 and 2001.

b. The economic profit target for the division for 2001.

c. The division managers bonus payout (% of salary) for 2000 and 2001. (Assume that the slope of the payoff line for 2000 was arbitrarily set by the Berkshire management to equal 1.0.)

Note: To do these calculations, students must prepare an advertising expenditure amortization schedule.

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Exhibit TN-1 Onnratind Data from Rorkshiro Industries' Snack Fonds Division (fo00l Exhibit TN-1 Onnratind Data from Rorkshiro Industries' Snack Fonds Division (fo00l

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