Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ben Johnson is the manager of the jewelry department of a large chain of department stores. The department store has succeeded on the basis of

image text in transcribed
Ben Johnson is the manager of the jewelry department of a large chain of department stores. The department store has succeeded on the basis of customer service and quality of merchandise As a manager, Ben is compensated with a salary of $370,000 and a bonus based on his unit's operating income. The bonus pool is 10% of company-wide operating income When the unit's return on invested assets exceeds the rate of return of the whole company, the unit manager is included in the bonus pool, which is divided evenly among the managers who qualify for the bonus. In the current period, 20 managers qualified for the bonus, including Ben Jewelry Department Whole Company Stock price $ 42 Operating income $ 2,068,000 $ 18,200,000 Assets invested $ 24,200,000 $ 289,200,000 Customer service Quality of service Total revenue $ 3,670,000 $ 125,300,000 Required: Based on the above information, what is the amount of total compensation for Ben? 4 4 5 $370,000 $463750 O $461,000 O $473,000

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

Accounting Information Systems Understanding Business Processes

Authors: Brett Considine, Alison Parkes, Karin Olesen, Michael Lee, Derek Speer

3rd Edition

1742165559, 978-1742165554

More Books

Students also viewed these Accounting questions

Question

9. How are they similar to you? (specifically)

Answered: 1 week ago

Question

13. What are their tastes? (refined, middle class, or subsistence)

Answered: 1 week ago