Also part B is "Include nonfinancial measures when evaluating management and rewarding performance."

Twin City Press produces textbooks for high school accounting courses. The company recently hired a new editor, Leigh Green, to handle production and sales of books for an introductory accounting course. Leigh's compensation depends on the gross margin associated with sales of this book. Leigh needs to decide how many copies of the book to produce. The following information is available for the fall semester 2020: (Click the icon to view the information.) Leigh has decided to produce either 26,000,32,500, or 33,800 books. Read the requirements. Requirement 3. Managers who are paid a bonus that is a function of gross margin may be inspired to produce a product in excess of demand to maximize their own bonus. There are metrics to discourage managers from producing products in excess of demand. Do you think the following metrics will accomplish this objective? Show your work. a. Incorporate a charge of 15% of the cost of the ending inventory as an expense for evaluating the manager. (Complete all input fields. For a $0 change, make sure to enter "0" in the appropriate cell.) Twin City Press produces textbooks for high school accounting courses. The company recently hired a new editor, Leigh Green, to handle production and sales of books for an introductory accounting course. Leigh's compensation depends on the gross margin associated with sales of this book. Leigh needs to decide how many copies of the book to produce. The following information is available for the fall semester 2020: (Click the icon to view the information.) Leigh has decided to produce either 26,000,32,500, or 33,800 books. Read the requirements. Requirement 3. Managers who are paid a bonus that is a function of gross margin may be inspired to produce a product in excess of demand to maximize their own bonus. There are metrics to discourage managers from producing products in excess of demand. Do you think the following metrics will accomplish this objective? Show your work. a. Incorporate a charge of 15% of the cost of the ending inventory as an expense for evaluating the manager. (Complete all input fields. For a $0 change, make sure to enter "0" in the appropriate cell.)