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Can I get some help on A and B please? Elba Consulting Associates (ECA) is organized into
three divisions (Manufacturing, Retail, and Entertainment). Many support services, such as
human resources, legal, and information technology, are provided by corporate staff. The
corporate staff costs are allocated to the divisions based on divisional revenue. The resulting
divisional operating profit (computed as divisional revenues less divisional direct costs less
corporate cost allocations) is used to evaluate and compensate all division managers. The
compensation plan consists of a fixed salary plus a bonus, which depends on the actual divisional
operating profit compared to the target profit. The fixed salary for all three division managers is
$550,000. The bonus consists of two parts. First, there is a "target bonus," which is a flat $25,000
for meeting the operating profit target. Second, there is an "incentive bonus," which is equal to
0.20% of salary for every thousand dollars of operating profit in excess of the target. The bonus
amounts are not included in divisional operating profits. Partial target and actual results for the
most recent year were as follows: The target and actual corporate costs for the most recent year
were as follows: Required:
What are the target operating profits in each division for the most recent year after the corporate
costs are allocated? What are the reported (actual) operating profits in each division for the most
recent year after the corporate costs are allocated? What is the total bonus that will be paid to
each of the three managers? Complete this question by entering your answers in the tabs below.
What are the target operating profits in each division for the most recent year after the corporate
costs are allocated? Note: Do not round intermediate calculations. Enter your answers in
thousands of dollars.
What are the target operating profits in each division for the most recent year after the corporate
costs are allocated? What are the reported (actual) operating profits in each division for the most
recent year after the corporate costs are allocated What is the total bonus that will be paid to each
of the three managers? Complete this question by entering your answers in the tabs below. What
are the reported (actual) operating profits in each division for the most recent year after the
corporate costs are allocated? Note: Do not round intermediate calculations. Enter your answers
in thousands of dollars.

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Can I get some help on A and B please Elba Consulting Associates (E.pdf

  • 1. Can I get some help on A and B please? Elba Consulting Associates (ECA) is organized into three divisions (Manufacturing, Retail, and Entertainment). Many support services, such as human resources, legal, and information technology, are provided by corporate staff. The corporate staff costs are allocated to the divisions based on divisional revenue. The resulting divisional operating profit (computed as divisional revenues less divisional direct costs less corporate cost allocations) is used to evaluate and compensate all division managers. The compensation plan consists of a fixed salary plus a bonus, which depends on the actual divisional operating profit compared to the target profit. The fixed salary for all three division managers is $550,000. The bonus consists of two parts. First, there is a "target bonus," which is a flat $25,000 for meeting the operating profit target. Second, there is an "incentive bonus," which is equal to 0.20% of salary for every thousand dollars of operating profit in excess of the target. The bonus amounts are not included in divisional operating profits. Partial target and actual results for the most recent year were as follows: The target and actual corporate costs for the most recent year were as follows: Required: What are the target operating profits in each division for the most recent year after the corporate costs are allocated? What are the reported (actual) operating profits in each division for the most recent year after the corporate costs are allocated? What is the total bonus that will be paid to each of the three managers? Complete this question by entering your answers in the tabs below. What are the target operating profits in each division for the most recent year after the corporate costs are allocated? Note: Do not round intermediate calculations. Enter your answers in thousands of dollars. What are the target operating profits in each division for the most recent year after the corporate costs are allocated? What are the reported (actual) operating profits in each division for the most recent year after the corporate costs are allocated What is the total bonus that will be paid to each of the three managers? Complete this question by entering your answers in the tabs below. What are the reported (actual) operating profits in each division for the most recent year after the corporate costs are allocated? Note: Do not round intermediate calculations. Enter your answers in thousands of dollars.