Financial Exercise #1

Using the data in Tables 7.4 and 7.5 in your text, calculate the total year-end bonus amount for a nurse manager who earns $100,000 annually, has a 10% bonus target, meets the individual financial contributions, and completes his or her assigned tactics, but fails to meet some of the individual and unit operational goals, and works in a hospital that has met all of its strategic, operational, and financial goals, achieved 115% of the projected EBITDA, and utilizes the all-or-nothing approach to the incentive compensation criteria. Assume that the maximum aggregate bonus amount is set high enough for all to receive the entire individually calculated bonus amounts.

Hint

Maximum bonus potential =

Company results contribution maximum:

Unit results contribution maximum:

Individual results contribution maximum:

Total bonus payout:

Complete the calculation for this assignment in a word document. Upload the document to the Week 6 Assignment link

OR