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There is a company which manufactures switchgear and specifically designed the electricity boards, which are sold to customer through wide-spread retailers and distributors network across the country. CPS enjoys the high reputation among the stakeholders, specifically workers. The attrition rate at CPS is relatively lower than of other players in the industry; reason for low attrition rate is employee friendly policies, specifically in regard to sharing of profit and employee participation in decision making. Cona Precise Solution applied a profit-sharing plan around three ago. The terms of profit share plan of CPS can be read as follows– 1. The CPS will be responsible to make available the profit share pool, which will be equivalent to the minimum of following of three limits–a. 30% of Earning before taxes, to the extent it is excess of the minimum acceptable target profit margin, or b. 0.75% of Gross Revenue, or c. Absolute amount of 2.5 Crores 2. Minimum acceptable target profit margin will equivalent to the average of last three year’s net operating profit of industry group. 3. The individual employee will be participated in profit share pool in proportion to ratio of that employee salary to the total salary of all employee of that division. Additional Information for year just closed are– 1. CPS’s earning before tax is 40 Crores. 2. Net operating assets employed by CPS are 120 Crores. 3. During the year, CPS records the revenue of 360 Crores. 4. Total relevant payment of salary for the year was 42 Crores. 5. Industry’s average last three year’s net operating profit rate is 8% of net operating assets. Required (i) EXPLAIN profit sharing plan, as performance management tool and group incentive plan. (ii) COMPUTE the will the amount to be make available as profit sharing pool by CPS. (iii) Mr. Vineet Shukla, who is one of the employee of CSP and eligible to participate in profit share plan, if his annual salary is 36 lakhs, then COMPUTE the amount of his profit share. (iv) Synthesise profit sharing plan of CPS, in order to highlight major limitation