the consultancy imagination inc. is working with its manufacturing client parts-r-us to improve their on-time performance. the firm can earn a bonus of up to $1,000,000 based on how much the on-time performance actually improves. it's current (baseline) on-time performance is 90%. the company typically completes approximately 1,000 orders per month, with approximately 100 orders delayed. the bonus payment is prorated according to the following criteria: the on-time performance improvement is calculated based on a reduction in late events or an improvement in on-time performance. no bonus is earned for the first 25% reduction in late events, say from 100 to 75. maximum bonus is earned once parts-r-us achieves 95% on-time performance.