P23-38 (similar to) Question Help Snail Company recently introduced a new bonus plan for its corporate executives. A(Click the icon to view more information.) In 2016 and 2017, Snail's three business units reported the following performance results: (Click the icon to view the performance results.) Read the requirements. Requirement 1. Compute the bonus as a percent of salary earned by each business unit executive in 2017. Begin by determining the formula to calculate the percentage change in net income and then calculate the percentage change for each business unit. (Round the percentage change to two decimal places, X.XX%. Abbreviations used: cust. = customer.) Percentage change in net income )/ Retail sales % Online sales )/ % Wholesale = % More Info Data Table Retail Sales Online Sales Wholesale 2016 2017 2016 2017 2016 2017 The company believes that current profitability and customer satisfaction levels are equally important the company's long-term success. As a result, new plan awards a bonus equal to 0.5% of salary for each 1% increase in business unit net income or 1% increase in the business unit's customer satisfaction index. For example, increasing net income from $1 million to $1.1 million (or 10% from its initial value) leads to a bonus of 5% of salary, while increasing business unit's customer satisfaction index from 50 to 60 (or 20% from its initial value) leads to a bonus of 10% of salary. There is no bonus penalty when net income or customer satisfaction declines. $ 760,000 $ 822,600 $ 1,558,544 $ Net income Customer satisfaction 1,220,000 $ 78.5 1,065,100 $ 68.2 1,150,250 74.7 83 89 77 Print Done Chd Print Done P23-38 (similar to) Question Help Snail Company recently introduced a new bonus plan for its corporate executives. A(Click the icon to view more information.) In 2016 and 2017, Snail's three business units reported the following performance results: (Click the icon to view the performance results.) Read the requirements. Requirement 1. Compute the bonus as a percent of salary earned by each business unit executive in 2017. Begin by determining the formula to calculate the percentage change in net income and then calculate the percentage change for each business unit. (Round the percentage change to two decimal places, X.XX%. Abbreviations used: cust. = customer.) Percentage change in net income )/ Retail sales % Online sales )/ % Wholesale = % More Info Data Table Retail Sales Online Sales Wholesale 2016 2017 2016 2017 2016 2017 The company believes that current profitability and customer satisfaction levels are equally important the company's long-term success. As a result, new plan awards a bonus equal to 0.5% of salary for each 1% increase in business unit net income or 1% increase in the business unit's customer satisfaction index. For example, increasing net income from $1 million to $1.1 million (or 10% from its initial value) leads to a bonus of 5% of salary, while increasing business unit's customer satisfaction index from 50 to 60 (or 20% from its initial value) leads to a bonus of 10% of salary. There is no bonus penalty when net income or customer satisfaction declines. $ 760,000 $ 822,600 $ 1,558,544 $ Net income Customer satisfaction 1,220,000 $ 78.5 1,065,100 $ 68.2 1,150,250 74.7 83 89 77 Print Done Chd Print Done