TB MC Qu. 20-41 (Algo) The total amount of the bonus pool for the next year: Household Brands Incorporated 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 $ 26,100 $ 1,900 $ 9,400 2021 20,100 1,800 9,100 2022 17,800 1,400 9,310 Household 2020 15,500 1,800 7,510 2021 14,300 1,000 7,100 2022 9,900 930 6,290 Electronics 2020 13,700 1,600 4,480 2021 9,540 1,000 4,000 2022 8,760 910 4,200 Household Brands Total 2020 55,300 5,300 21,390 2021 2022 43,940 3,800 20,200 36,460 3,240 19,800 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.