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Household Brands Incorporated (HBI) manufactures household goods in the United States. The company made two acquisitions in previous years to diversify their product lines.

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: Operating Revenue Income Assets Cosmetics $ 1,700 $ 9,600 , 000 2020 $ 23,300 2021 25,300 1,000 2022 21,700 1,700 9,200 Household 2020 17,200 1,400 7,660 2021 12,500 700 7,000 2022 9,600 870 6,200 Electronics 2020 12,900 1,900 4,280 2021 9,400 1,500 4,100 2022 8,670 920 4,030 Household Brands Total 2020 53.400 5.000 21.540 Household Brands Total 2020 53,400 5,000 21,540 2021 47,200 3,200 19,100 2022 39,970 3,490 19,430 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 $67,000. $115,100. $67,000. $115,100. $211,800. $167,800. $353,800.

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