Household Brands Incorporated (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 2022, 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
2020	$ 24,500	$ 2,300	$ 10,000
2021	22,500	1,900	10,000
2022	19,600	1,800	9,500
Household
2020	17,400	1,300	7,500
2021	15,300	1,100	8,000
2022	12,500	900	6,500
Electronics
2020	13,500	1,500	4,500
2021	9,500	1,100	4,500
2022	8,700	1,050	4,300
Household Brands Total
2020	55,400	5,100	22,000
2021	47,300	4,100	22,500
2022	40,800	3,750	20,300

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.

The total amount of the bonus pool for 2020 is:

Multiple Choice

• $145,000.

• $218,000.

• $141,000.

• $174,000.

• $360,000.