Question: Answer question 3 in details with bonus calculations _-.r .__ _--_-'_-_ _ Berkshire Industries Deliverables: Please analyze the following assignment questions and document your answers

Answer question 3 in details with bonus calculations

_-__.r .____ _--_-'_-_ _ Berkshire Industries Deliverables: Please analyze the following assignment questions and document your answers in a two-page report. You may include additional discussions of other issues and your suggestions, if any. Submit the report {one per group) through LMS. Due is Thursday 9 June, 23:59. Assignment Questions: 1. Were Berkshire's motivations for a new incentive system reasonable? If so, what were their main options for a new system? Was an economic profit-focused system a reasonable choice? 2. Use the data pertaining to the Snack Food Division, as shown in Table 1 below, to calculate: a. The economic profit for the division for 2000 and 2001. b. The economic profit target for the division for 2001. c. The division manager's bonus payout (% of salary) for 2000 and 2001. (Assume that the slope of the payoff line for 2000 was arbitrarily set by the Berkshire management to equal 1.0.) 3. Assume the base salary of the manager of the Snack Foods Division was 120,000 in both 2000 and 2001. How much cash would the manager receive from his bonus payouts in 2000 and 2001? 4. Evaluate the Berkshire Industries' new incentive plan. What changes would you recommend, if any? 5. What, if anything, should Mr. Embleton do about the problems caused by performance shortfalls in the Spirits Division in 2000 and 2001? Should Mr. Embleton make special adjustments of the economic prot figures or the bonus payouts for personnel in the Spirits Division in 2000 and 2001? Why or why not

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Question: Answer question 3 in details with bonus calculations _-__.r .____ _--_-'_-_ _ Berkshire Industries Deliverables: Please analyze the following assignment questions and document your answers

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Question: Answer question 3 in details with bonus calculations _-.r .__ _--_-'_-_ _ Berkshire Industries Deliverables: Please analyze the following assignment questions and document your answers