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In 1992 the state of California charged Sears Auto Centers with overcharging customers for unneeded or unperformed repairs. Sears agreed to a settlement that could cost as much as $20 million. Sears had compensated its salespeople with commissions based on total sales. Following the settlement, Sears dropped the commissions and went to a straight salary. Sears recently indicated that it is planning to reinstate commissions for salespeople in their Auto Centers. It even plans on paying commissions for selling customers brake jobs and wheel alignments. These two products were the core of the 1992 scandal. Sears says that it has taken steps to prevent a recurrence of past problems. In particular, the decision right to recommend repairs is granted to mechanics that are paid a straight salary. Sales consultants are paid commissions for selling repair services but are not authorized to recommend repairs. Under the old system that caused problems, these individuals diagnosed repair problems and sold the corresponding service to customers.
1. Why do you think Sears wants to reinstall commissions for its salespeople?
2. Do you think that the new safeguard that separates diagnosing problems from selling services will prevent a recurrence of past problems? Explain.
Did Yuki's leadership style match what was needed in the situation? Why or why not? Which of Yuki's actions indicated relationship behavior?
On August 1,Wade Company buys 1,000 shares of Morgan common stock for $35,000 cash, plus brokerage fees of $700. On December 1, Wade sells the stock investments for $40,000 in cash. Journalize the purchase and sale of the common stock.
At Designs by Deirdre, the budgeted income statement for December, 2011, indicated sales of $600,000 and cost of sales of $400,000.
What effect does the lease classification have on A&Fs balance sheet and Over the life of the lease, what effect does this classification have on the company's net income?
Write a paragraph explaining why, in the calculation of a company's EVA, non interest-bearing current liabilities are subtracted from total assets to determine investment.
Prepare a revised income statement assuming the envelope product line is eliminated. Assume that a pro rata amount of advertising is avoidable, product line supervisor salaries are avoidable, depreciation and general overhead are unavoidable.
The ending inventory was 80% complete with respect to materials and 20% complete with respect to conversion costs - the cost per equivalent unit for materials for the month in the first processing department is closest to
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Focusing only on the Model C210 chisel and the model D400 chisel, what would be the benefit to the firm of gaining one more hour of production time in coating and sharpening?
accountants and other members of the management team searching for means of understanding and improving standard
Twelve individuals agreed to sponsor and promote a group of Little League baseball teams called the Golden Spike Little League. The league was a loosely formed voluntary association without any legal identit
Prepare a cash budget for the period October to December 2009, indicating the extent of the bank facilities the company will require at the end of each month:
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