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Household Brands Inc. ( HBI ) manufactures household goods in the United States. The company made two acquisitions in previous years to diversify their product
Household Brands Inc. HBI manufactures household goods in the United States. The company made two acquisitions in previous years to diversify their product lines. In HBI acquired cosmetics and consumer electronics companies. HBI is now, in comprised of three divisions: cosmetics household, and consumer electronics. The following information in thousands of dollars presents operating revenues, operating income, and invested assets of the company over the last three years:
Revenue Operating Income Assets
Cosmetics
$ $ $
Household
Electronics
Household Brands Total
The current compensation package is an annual bonus award. The senior executives share in the bonus pool. The pool is calculated as of the annual residual income of the company. The residual income is defined as operating income minus a cost of capital charge of of invested assets. Round all calculations to two significant digits.
Return on sales in the household division in is rounded:
A
B
C
D
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