Consider the following set of circumstances for a business:

Materials

SQSP AQSP AQSP AQAP

$1,500,000 $1,450,000 $1,375,000 $1,525,000

MPV = Unfavorable $150,000

MQV = Favorable $50,000

Labour

SQ SRAQ SRAQAR

$2,650,000 $2,825,000 $3,100,000

LRV = Unfavorable $275,000

LEV = Unfavorable $175,000

On investigation, it has been determined that the purchasing department employeebought higher quality materials than the specifications call for, but did not confirm the purchase with anyone nor notify anyone of the higher quality.All of the variances above resulted from this one purchasing decision.

1)Determine what you would do regarding the actions taken by the purchasing department, should the person be terminated, pay for the losses, etc.Be creative.