\fComplete this question by entering your answers in the tabs below. Required 1A Required 13 Required 2A Required 23 Required 3A Required BB Required 3C Compute the Charter Division semiannual installments and total incentive bonus awarded for 20x1. First semiannual bonus awarded Second semiannual bonus awarded Total bonus awarded for the year Required 13 > Complete this question by entering your answers in the tabs below. Required 1A Required 1E: Required 2A Required 23 Required 3A Required 33 Required 3C After the implementation of the revised bonus plan, what would be the likely behavior of the employees of the Charter Division? The employees of the Charter Division are likely to be l ( Required 1A Required 2A > Complete this question by entering your answers in the tabs below. Required 1A Required 13 Required ZA Required 23 Required 3A Required 33 Required 3C Compute the Mesa Division semiannual installments and total incentive bonus awarded for 20x1. First semiannual bonus awarded Second semiannual bonus awarded Total bonus awarded for the year ( Required 13 Required 23 > Complete this question by entering your answers in the tabs below. Required 1A Required 13 Required 2A Required 23 Required 3A Required 33 Required 3C After the implementation of the revised bonus plan, what would be the likely behavior of the employees of the Mesa Division? The employees of the Mesa Division are likel)r to be ( Required 2A Required 3A > Complete this question by entering your answers in the tabs below. Required 1A Required IE Required 2A Required 23 Required 3A Required 33 Required 3C What effects did Harrington's revised incentive bonus plan have on the Charter Division? (Select "Yes" if the statement had an effect on Charter division, and "No" if it does not have an effect.) Decreased rework costs. Increased the operating income. Increased ontime deliveries. Increased rework costs. Decreased sales returns. Decreased ontime deliveries. Increased sales returns. Decreased the operating income. ( Required 23 Required 33 > Complete this question by entering your answers in the tabs below. Required 1A Required 1E: Required 2A Required ZB Required 3A Required 35 Required 30 What effects did Harrington's revised incentive bonus plan have on the Mesa Division? (Select "Yes" if the statement had an effect on Mesa division, and "No" if it does not have an effect.) Increased the operating income. Decreased ontime deliveries. Decreased sales returns. Decreased the operating income. Increased sales returns. Increased onetime deliveries. Decreased rework costs. Increased rework costs. ( Required 3A Required 36 > Complete this question by entering your answers in the tabs below. Required 1A Required 13 Required 2A Required 23 Required 3A Required 33 Required 38 What changes would you recommend that might improve the revised incentive bonus plan? (Select "Yes" if the change will improve the revised incentive bonus plan, and "No" if it will not improve.) Develop benchmarks to encourage continuous improvement. Create a reward structure for costs that have a low percentage of operating income to drive costs lower. Continue the semiannual calculation. ( Required 33 MedLine Equipment Corporation specializes in the manufacture of medical equipment, a eld that has become increasingly competitive. Approximately two years ago, Ben Harrington, president of MedLine, became concerned that the company's bonus plan, which focused on division profitability, was not helping MedLine remain competitive. Harrington decided to implement a plan that would encourage employees to focus on operational areas that were important to customers and that added value without increasing cost. To provide an incentive to employees to contribute ideas, a share of company prots would be awarded to employees, and there would be additional financial incentives for reduced rework costs, reduced sales returns, and ontime deliveries. Incentive bonuses, which would be distributed among the relevant employees according to a formula developed by the division manager, would be calculated and awarded semiannually on the following basis. Profitability: Two percent of operating income. Rework: Costs in excess of 2 percent of operating income are deducted from the bonus amount. Ontime delivery: $19,000 per employee if over 98 percent of deliveries are on time, $13,000 if 96 to 98 percent of deliveries are on time, and no increment if ontime deliveries are below 96 percent. Sales returns: $11,400 per employee if returns are less than 1.5 percent of sales. Fifty percent of any amount in excess of 1.5 percent of sales is deducted from the bonus amount. Note: If the calculation of the incentive bonus results in a negative amount for a particular period, there is no bonus, and the negative amount is not carried forward to the next period. The revised incentive bonus plan was implemented on January 1. 20x1. Presented in the following table are the results for two of Medline's divisions, Charter and Mesa Divisions, for the rst year under the new bonus plan. Both ofthese divisions had similar sales and operating income results for the prior year, when the old bonus plan was in effect. Based on the 20x0 results, the employees of the Charter Division earned an incentive bonus of $63,120 while the employees ofthe Mesa Division earned $61,420