Household Brands Incorporated (HBI) manufactures household goods in the United States. The company made two acquisitions...

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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: Operating Revenue Income Assets Cosmetics 2020 $ 22,600 $ 2,100 $ 10,600 2021 24,900 2,300 10,500 2022 20,900 1, 300 9, 200 Household 2020 15,600 1, 200 7,770 2021 12,900 1, 200 7,830 2022 11,100 940 6,550 Electronics 2020 15,000 2,000 4,350 2021 9,490 600 4,680 2022 8,400 1,140 4,260 Household Brands Total 2020 53,200 5,300 22,720 2021 47, 290 4, 100 23,010 2022 40,400 3,380 20,010 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 2020 is: 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: Operating Revenue Income Assets Cosmetics 2020 $ 22,600 $ 2,100 $ 10,600 2021 24,900 2,300 10,500 2022 20,900 1, 300 9, 200 Household 2020 15,600 1, 200 7,770 2021 12,900 1, 200 7,830 2022 11,100 940 6,550 Electronics 2020 15,000 2,000 4,350 2021 9,490 600 4,680 2022 8,400 1,140 4,260 Household Brands Total 2020 53,200 5,300 22,720 2021 47, 290 4, 100 23,010 2022 40,400 3,380 20,010 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 2020 is:

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Answer Total Invested Assets2020 22600000 Cost of C... View the full answer