33) Household Brands Inc

Household Brands Inc. (HBI) manufactures household goods in the United States, The company made two acquisitions in previous years to diversify their product lines, In 2011, HBI acquired cosmetics and consumer electronics companies. HBI is now, in 2020, comprised ofthree divisions: cosmetics. household, and consumer electronics. The following information (in thousands of dollars) presents operating revenues, operating income, and invested assets of the company over the last three years: Revenue Operating Income Assets Cosmetics 2918 $25,499 $2,599 $ 9,299 2919 19,899 1,399 8,199 2929 29,999 1,499 9,779 Household 2918 15,999 1,799 7,269 2919 16,199 1,999 7,219 2626 12,389 886 6,686 Electronics 2918 13,399 1,799 4,339 2919 9,569 1,999 4,139 2929 8,799 1,189 4,159 Household Brands Total 2918 54,699 5,999 29,799 2919 45,469 3,399 19,449 2929 41,999 3,469 29,699 The current compensation package is an annual bonus award. The senior executives share in the bonus pool. The pool is calculated as 20% ofthe annual residual income of the company. The residual income is dened as operating income minus a cost of capital charge of15% ofinvested assets. Round all calculations to two signicant digits. The total amount ofthe bonus pool for 2020 is