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:

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 2019 is:

Multiple Choice

• $360,000.
• $141,000.
• $145,000.
• $174,000.
• $218,000.

Revenue Operating Income Assets $24,500 22,500 19,600 $2,300 1,900 1,800 $10,000 10,000 9,500 17,400 15,300 12,500 1,300 1,100 900 Cosmetics 2018 2019 2020 Household 2018 2019 2020 Electronics 2018 2019 2020 Household Brands Total 2018 2019 2020 7,500 8,000 6,500 13,500 9,500 8,700 1,500 1,100 1,050 4,500 4,500 4,300 55,400 47,300 40,800 5,100 4,100 3,750 22,000 22,500 20,300