Question: PLEASE SHOW YOUR WORK 23. (7 points) Continuing with Tapir Inc. from the previous page, manager compensation is an annual salary plus a bonus award

PLEASE SHOW YOUR WORK 23. (7 points) Continuing with Tapir Inc. fromPLEASE SHOW YOUR WORK

the previous page, manager compensation is an annual salary plus a bonus

23. (7 points) Continuing with Tapir Inc. from the previous page, manager compensation is an annual salary plus a bonus award for those that qualify. Managers qualify for the bonus award when their division ROA equals or exceeds Tapir Inc. ROA. The bonus amount per manager is based on a bonus pool calculated as Tapir Inc. Residual Income multiplied by 30% then divided by the number of qualifying managers. The qualifying managers share equally in the bonus pool. Residual Income is defined as Operating Income minus an interest charge of 7% of Average Total Assets. a. For 2021, calculate each division's ROA and identify which divisions qualify for the bonus pool (report percentages rounded two decimals). b. Calculate the 2021 bonus pool amount for total Tapir Inc. and the bonus amount per manager. c. Based on your analysis, identify "Yes" or "No" if the bonus compensation plan helps Tapir Inc. be goal congruent. Next discuss the reasons for your answer. 22. (6 points) Tapir Inc. operates with three divisions: Brazil, Columbia, Argentina. Below are selected results for each division over the last two years. 23. (7 points) Continuing with Tapir Inc. from the previous page, manager compensation is an annual salary plus a bonus award for those that qualify. Managers qualify for the bonus award when their division ROA equals or exceeds Tapir Inc. ROA. The bonus amount per manager is based on a bonus pool calculated as Tapir Inc. Residual Income multiplied by 30% then divided by the number of qualifying managers. The qualifying managers share equally in the bonus pool. Residual Income is defined as Operating Income minus an interest charge of 7% of Average Total Assets. a. For 2021, calculate each division's ROA and identify which divisions qualify for the bonus pool (report percentages rounded two decimals). b. Calculate the 2021 bonus pool amount for total Tapir Inc. and the bonus amount per manager. c. Based on your analysis, identify "Yes" or "No" if the bonus compensation plan helps Tapir Inc. be goal congruent. Next discuss the reasons for your answer. 22. (6 points) Tapir Inc. operates with three divisions: Brazil, Columbia, Argentina. Below are selected results for each division over the last two years

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!