Baird Corporation has three divisions, each operating as a responsibility center. To provide an incentive for divisional executive officers, the company gives divisional management a bonus equal to 16 percent of the excess of actual net income over budgeted net income. The following is Atlantic Division's current year's performance.

Transcribed Image Text:

Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income Current Year $4,110,000 2,350,000 1,760,000 840,000 $ 920,000 Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income Current Year $4,110,000 2,350,000 1,760,000 840,000 $ 920,000