In the case of a plant manager, the standard award also was adjusted by a formula that related percent of standard award to the plant's profit variance (budget versus actual profi). For example, if the plant' actual profit for the year exceeded its budgeted profit by 4 percent, the plant manager's bonus was raised from 100 percent of standard to 110 percent of standard. In making this bonus adjustment, the plant's actual profit was adjusted for any favorable or unfavorable gross margin variance caused by sales the AM division being higher or lower than budgeted. For example, if a plant's favorable profit variance was