Vyaderm Pharmaceuticals 1
- Compute the year 2000 EVA for the North American Dermatology Division.
- Compute the year 2000 EVA bonus payout for a manager earning $200,000, assuming that the manager’s bonus is based 100% on the division’s EVA.
- Compute the year 2001 EVA and estimated bonus payout for the same manager, assuming that Vyaderm profits fall back to historical levels and the EVA improvement goal remains constant.
- Based on your analysis, what is your recommendation for the company?