Community Service. Jon Jensen, president of Jensen Groceries, is evaluating several marketing and community charitable activities. The
Question:
Community Service. Jon Jensen, president of Jensen Groceries, is evaluating several marketing and community charitable activities. The activities include:
Jensen's 10K Run for Food: This popular event gets 400 participants, raises about \(\$ 10,000\) for the local food bank, and costs Jensen about \(\$ 5,000\) in support costs. Jensen does worry about legal liability for race accidents.
United Way contribution: Jensen matches all contributions made by his employees to the local United Way. Jensen's contribution was \(\$ 15,000\) last year. The company receives a plaque and newspaper coverage.
Gourmet cooking classes: Jensen hires a local cooking expert to teach a series of ethnic foods classes. The classes cost about \(\$ 6,000\) per year and have helped give the store a reputation as a connoisseur's food center.
Jensen's helpers: The company encourages employees to give volunteer time to community organizations. If an employee gives forty hours to predetermined charities, Jensen gives the person two days of paid vacation time. Last year this cost Jensen \(\$ 8,000\) in vacation time and overtime for replacements.
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Suggest how Jensen can evaluate these "investments" in the community.
Step by Step Answer:
Managerial Accounting
ISBN: 9780538842822
9th Edition
Authors: Harold M. Sollenberger, Arnold Schneider, Lane K. Anderson