Question: Please only write the answer of question 3 and question 5 in details. 1. Were Berkshire's motivations for a new incentive system reasonable? If so,

Please only write the answer of question 3 and question 5 in details.

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 Exhibit TN-1, 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.) Note: To do these calculations, students must prepare an advertising expenditure amortization schedule. 3. Assume the base salary of the manager of the Snack Foods Division was E120,000 in both 2000 and 2001. How much cash would the manager receive from his bonus payouts in 2000 and 2001? 4. Evaluate Berkshire Industries' new incentive plan. What changes would you recommend, if any? 5. Should Mr. Embleton make special adjustments of the economic profit figures or the bonus payouts for personnel in the Spirits Division in 2000 and 2001? Why or why not

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Please only write the answer of question 3 and question 5 in details.. 1. Were Berkshire's motivations for a new incentive system reasonable? If so, what were their main options for a new system? Was...

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...

Table 1 Operating Data from Berkshire Industries' Snack Foods Division (000) From the income statement: Net operating profit before the following items: Consumer advertising expense Goodwill...

Table of Contents Table of Contents.1 Instructions to Learner2 Assessment instructions.2 Assessment requirements.5 Candidate Details.6 Assessment - BSBCRT511: Develop critical thinking in others.6...

Please help me to answer the question: why is IFRS an appropriate direction for accounting practice to ensure consistency and comparability of accounting practice across the world? Use the attach...

Dear Sir I Would like the answers of the documents i attach School of Business and Economics EXAM Course : Code : Date Time Location Risk Management EBC4056 : 3 June, 2010 : 9.00 - 12.00 : MECC...

Hello, I have assessment.. Step 1 : Calculate the following ratios for the latest five years using the O-S Checklist Approach, an Excel template . For an overview of the approach, read our article,...

12:38 4 Assignment Details MTH 154-N41A: Quantitative Reasoning (SP21) MTH 154 Excel Project In this major project, you will create an Excel file and answer questions about linear and exponential...

Accredited by: IACBE ECBE EDUQUA Member of: CCIG FEDE FSEP AGEP ACICS FINAL EXAM 2016 TOP 100 Business Communication (PLEASE PRINT YOUR DETAILS IN CAPITAL LETTERS) Course Code: TOP 100 Course Title:...

iwer sheet provided. The first journal entry has been done as an example. e trial balance for the following transactions of Locsin Decorators. Use the For the month of April 2020: (1) journalize, (2)...

Tom Pryor formed a management consulting firm specializing in cost management systems. Below are the transactions that occurred during the initial month of operation. June 2 June 3 June 8 June 9 June...

There are several reasons why it is not as common to confirm accounts payable at an interim date as it is for accounts receivable ( Select all answers that apply. ) A . Accounts payable confirmation...

Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up...