Assume the slope of the payoff line for bonuses in the case was set to 1.0 by management. Also. the Snack Food Division manager base salary is 120,000 pounds in both 2000 and 2001. Use the data in the attached file to compute the following:

The economic profit for the division in 2000 and 2001.

The economic profit target for the division in 2001.

The division managers bonus payout as a percentage of salary for 2000 and 2001.

The amount of cash the manager would receive from his bonus payouts in 2000 and 2001.

Berkshire case