Approximately two years ago , Ben Harrington, president of summit , decided to revise the bonus plan (based ,at the time, entirely on operating income) to encourage division managers to focus on areas that were important to customers and that added value without increasing cost. In addition to a profitability incentive, the revised plan includes incentives for reduced rework costs, reduced sales returns, and on-time deliveries. Bonuses are calculated and awarded semiannually on the following basis. A base bonus is calculated at 2% of operating income. This amount is then adjusted as follows