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Head Corporation is a maker of ski and other outdoor sporting equipment. The company has three operating departments. John, Mary and Steve are managers
Head Corporation is a maker of ski and other outdoor sporting equipment. The company has three operating departments. John, Mary and Steve are managers in each of these departments. The Company has recently instituted a revamped short term incentive plan, details of which are shown below. Calculate the annual bonus each employee. Employee Helen Lisa Matt Goal Salary 105,000 130,000 90,000 Target Incentive 25% 30% 20% Component Company 25% 30% 20% Net Income Divisional Net Department 50% 50% 50% Income Individual 25% 20% 30% Annual milestones Target Multipliers < 80% 0% 0% 0% 80%-99% 90% 90% 90% 100% - 125% 100% 100% 100% >126% 120% 120% 120% Actual results Company 110% 110% 110% Department 85% 110% 130% Individual 120% 100% 75%
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