New Management Bonus Plan: Each division would be given an economic profit" objective equal to budgeted operating profit minus budgeted operating assets multiplied by 12% Cash - assumed to be 10% of cost of sales Receivables and Inventories - Average actual month end balances Fixed Assets - Average actual end of month net book values Do the calculations for the investment base seem consistent? New Management Bonus Plan: Each division would be given an economic profit" objective equal to budgeted operating profit minus budgeted operating assets multiplied by 12% Cash - assumed to be 10% of cost of sales Receivables and Inventories - Average actual month end balances Fixed Assets - Average actual end of month net book values Do the calculations for the investment base seem consistent