Reference no: EM133148082
Your company is considering paying a commission to the sales force to expand sales. You are charged by the Chief Financial Officer with 1) computing a new breakeven point, and 2) the operating profit increase by 20% with the new sales commission plan.
You spend the next week gathering information, analyzing the information, and performing various cost-volume-profit analysis. You generate a report showing the new plan should lead to a substantial increase in sales with a minimum increase in breakeven sales. You create a memo explaining this report and the president of the company is pleased with your information and plans to implement it.
A few days later you review your numbers and realize your analysis has missed using the sales personnel's monthly salary and the fixed selling costs. You re-calculate your numbers and realize the results are drastically different.
You are unsure if you should report this new results to the CFO, who will have to tell the president of the error. Since you are new to the company, you are wondering what will happen if you do and do not report this issue.
1. Explain the issues with excluding the monthly salary and fixed selling costs in the calculation and why they are important.
2. What ethical issues do you need to understand, based on the results of your original and revised calculations?
3. Explain how this situation could have been avoided and who is responsible for the issue.
|
Why do stakeholders in the same organization
: Why do stakeholders in the same organization often have different goals? Would it not be best if they shared the same goals? Explain.
|
|
Analyze starbucks company
: Research and analyze Starbucks Company and answer the questions below: Questions:
|
|
Calculate the initial markup percentage required
: "A retailer in a boutique jewelry store has estimated expenses of 49%, markdowns at 15%, and stock shortage at 6.3%. A profit of 4% is desired. Calculate the i
|
|
Income tax and investment calculator
: Income Tax and Investment Calculator - implement at least two constructors. One will be the default one, it will initialize the variables
|
|
Explain the issues with excluding the monthly salary
: Your company is considering paying a commission to the sales force to expand sales. You are charged by the Chief Financial Officer with 1) computing a new break
|
|
Strategic value of upgrading the organizational website
: Write a 600-word (minimum length) position paper in which you argue for, or against, the strategic value of upgrading the organizational Website.
|
|
Explain the order-processing system
: Using suggestions/best practices and your knowledge of use cases, explain in point form the corrections that you would make to this set of main flow of activiti
|
|
Three sales goals using the smart formatting
: Three sales goals using the SMART formatting (specific, measurable, achievable, relevant, and time-based)
|
|
How consumers are involved in financial activities
: Government and Business as well as Consumers play roles in the Financial Industry.
|