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TB MC Qu. 20-42 (Algo) The total amount of the bonus pool for the third year: Household Brands Household Brands incorporated (HBI) manufactures household goods

TB MC Qu. 20-42 (Algo) The total amount of the bonus pool for the third year: Household Brands 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 $ 23,200 $ 2,900 $11,500 2021 24,500 1,500 9,100 2022 18,300 2,000 9,260 Household 2020 19,400 1,300 7,360 2021 14,500 1,600 7,880 2022 14,000 940 6,510 Electronics 2020 15,000 1,400 4,280 2021 9,530 1,400 4,550 2022 8,550 1,160 4,330 Household Brands Total 2020 2021 57,600 5,600 23,140 48,530 4,500 2022 40,850 4,100 21,530 20,100 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 2022 is: Multiple Choice O $254,100. O $283,800. O $217,000. O $239,800. O $425,800

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