Best Brand Inc.(BBI) manufactures household goods in the United States.The company made two acquisitions in previous years to diversify its product lines.In 2005,HPI acquired cosmetics and consumer electronics companies.BBI is now,in 2010,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: 
The following table shows the number of executives covered by the current compensation package of HPI: 
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.Round all calculations to two significant digits.The total amount of the bonus pool for 2010 is:
A) $134,000.
B) $218,000.
C) $141,000.
D) $174,000.
E) $205,000.
Correct Answer:
Verified
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