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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 lines. In

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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 lines. In 2011, HBI acquired cosmetics and consumer electronics companies. HBI is now, in 2020, 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 $21,700 23,900 18,700 $1,500 1,200 1,500 $ 9,500 9,000 9,290 17,700 18,000 13,200 800 900 7,600 7,900 6,640 850 Cosmetics 2018 2019 2020 Household 2018 2019 2020 Electronics 2018 2019 2020 Household Brands Total 2018 2019 2020 13,300 9,450 8,790 1,400 1,400 920 4,250 4,690 4,500 52,700 51,350 40,690 3,700 3,500 3,270 21,350 21,590 20, 430 The current compensation nackage is an annual bonus award The senior executives share in the bonus nool The The current compensation package is an annual bonus award. The senior executives share in the bonus pool. The pool is calculated as 20% of the annual residual income of the company. The residual income is defined as operating income minus a cost of capital charge of 15% of invested assets. Round all calculations to two significant digits. The total amount of the bonus pool for 2020 is: Multiple Choice $99,500 $41,100 $85,500 Multiple Choice O $99,500 $41,100. $85,500 $52,300 $81,500

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