Akash Kular is the Chief Financial Officer of the Calgary division of
ThermoDynamics Incorporated TDI Akash is evaluated on a
combination of Return on Investment, Residual Income and Return on
Sales. His annual bonus breakdown is as follows:
ROI Bonus Return on Investment for the year
RI Bonus Residual Income from all investments throughout
the year
ROS Bonus Return on Sales x
Bonus formula ROI Bonus ROS Bonus RI Bonus
The Calgary division of TDI had the following financials in :
Sales were $
Expenses were $
Cash on hand was $
Assets on hand were $
Loans outstanding were $
Retained Earnings was $
Required
What is the annual bonus that Akash will receive for the
operating year his required rate of return was
If Akash had the opportunity at the end of to take on a project
that would cost $ and produce Sales of and incur
expenses of $ Would he accept the project given his current
bonus structure?
PLEASE SOLVE THIS AS SOON AS POSSIBLE
