Sets found in the same folder
Other sets by this creator
As the sales manager for Natural Springs Hotel, Samantha Jones is responsible for selling conventions that use the hotel's grand ballroom. Samantha received a call from Lois Drucker, president of a 1,000-member national education association. Lois expressed interest in having her group's annual conference at the hotel. Therefore, Samantha invited Lois to lunch at the hotel's Sunset Lounge to sell her on the merits of Natural Springs Hotel. Samantha likes to establish a relationship with potential customers. So minutes into the lunch, Samantha and Lois discovered they grew up in the same town. Time flew by as they reminisced about their hometown. Before they knew it, the lunch hour was over without them discussing any business.
Samantha returned to her office and opened her expense report software. She entered all the facts of the lunch-date, guest's name, and amount spent. She paused as she stared at the Purpose of Expense box. After a moment, she entered "Preliminary meeting with president of." Only then did she realize that she never learned the name of Lois's organization. Not sure what to do, she continued by entering "National Association of Educators." Did Samantha act in an ethical manner? Many models have been promoted to assist individuals in making ethical decisions.
Analyze the action. Is the action illegal?
Howard Industries Inc., operating at full capacity, sold 64,000 units at a price of $45 per unit during 2014. Its income statement for 2014 is as follows:
The division of costs between variable and fixed is as follows:
Management is considering a plant expansion program that will permit an increase of $900,000 in yearly sales. The expansion will increase fixed costs by$212,500, but will not affect the relationship between sales and variable costs.
- Determine the total fixed costs and the total variable costs for 2014.
- Determine for 2014 (a) the unit variable cost and (b) the unit contribution margin.
- Compute the break-even sales (units) for 2014.
- Compute the break-even sales (units) under the proposed program.
- Determine the amount of sales (units) that would be necessary under the proposed program to realize the $692,500 of income from operations that was earned in 2014.
- Determine the maximum income from operations possible with the expanded plant.
- If the proposal is accepted and sales remain at the 2014 level, what will the income or loss from operations be for 2015?
- Based on the data given, would you recommend accepting the proposal? Explain.