Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

44. Household Brands Inc. [HEM manufactures household goods in the United States. The company made two acquisitions in previous years to diversifyr their product lines.

image text in transcribed
image text in transcribed
44. Household Brands Inc. [HEM manufactures household goods in the United States. The company made two acquisitions in previous years to diversifyr their product lines. in 2008. HBI acquired cosmetics and consumer electronics companies. HEEI is now. in 2016. 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: Reven Operating Asset ue Income 5 -- 2014 $2453 32.300 smug -- --m Best B ra nds Total The current compensation package is an annual bonus award. The senior executives share in the bonus pool. The poof is calculated as 20% of the annual residual income of the company. The residual income is defined as operating income minus a cost of capital charge of 15% of invested assets. Round all calculations to two significant digits. Return on sales in the household division in 2015 is {rounded}: H.634 3.119 (3.188 D. 3.54

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Exploring The Hospitality Industry

Authors: John R Walker, Josielyn T Walker

3rd Edition

0133762777, 9780133762778

More Books

Students also viewed these General Management questions

Question

How to Construct a Relative Frequency Histogram

Answered: 1 week ago

Question

2. Ask questions, listen rather than attempt to persuade.

Answered: 1 week ago