Management about allocation of capital spending

Assignment Help Business Economics

Reference no: EM13986066

Two Division managers at King Size Manufacturing have been in a long discussion with top management about allocation of capital spending over the next three years. The current plan up for approval calls for the bulk of capital expenditures to go to Division H which historically has been the larger division of the firm. The manager defends this decision because, he says, his division has been providing the bulk of the profits for the company. Division J is smaller, and its manager says that it is time to make the divisions more even in size. His bonus is based on total sales and he wants a larger bonus for him slef and his management team. You have been called in to assist management in seeking a solution to this disagreement. What do you recommend?

Reference no: EM13986066

Questions Cloud

What is the bearings impact speed : If a bearing needs 4.50s to solidify enough for impact, how high must the tower be? What is the bearing's impact speed?

Statistical discrepancy what is the capital account : What is the current account for the economy below? If there is no statistical discrepancy what is the capital account?

Supply or demand for the dollar and for the euro : Describe what will happen to supply or demand for the dollar and for the euro in each of the following scenarios. Be sure to include whether each currency rises or falls in value.

Exchange rate between the dollar and the euro : The exchange rate between the dollar and the euro is one dollar to .8 euro (€). The price of a Mercedes is € 45,000; the price of a similar size Cadillac is $38,000. What is the euro price of the Caddy? What is the dollar price of the Mercedes?

Management about allocation of capital spending : Two Division managers at King Size Manufacturing have been in a long discussion with top management about allocation of capital spending over the next three years. The current plan up for approval calls for the bulk of capital expenditures to go to D..

Find the money multiplier and value of a dollar : Consider an economy in which people wish to hold bank checking deposits worth a total of 5 million goods and currency worth 2 million goods in every period. In addition there is a stock of unintermediated capital worth 10 million goods. Find the valu..

What is power of the laser beam as it emerges from filter : A 170 mW horizontally polarized laser beam passes through a polarizing filter whose axis is 26o from vertical. Draw a picture that shows the angles, and remember that the angle in Malus' law is between the two polarization axes. Also, while Malus' ..

Compute the present value enter rounded answers as directed : For each of the following, compute the present value (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places.

The order came in the right after the first of the year : The order came in the right after the first of the year, lowering your planned revenue numbers and the bonuses of your very deserving employees. It doesn't seem fair. What should you do?

User Account

All Pages