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could someone explain this with steps please Mr. Raju increased the firm's production to 20 million units in 2009, but managed to sell only 10
could someone explain this with steps please
Mr. Raju increased the firm's production to 20 million units in 2009, but managed to sell only 10 million units for the same price of $10 per unit. Assume that the firm's cost structure also stayed the same in 2009 as in 2008. The Board expressed its gratitude to Mr. Raju for taking on the assignment, despite the tough economic situation. (a) Determine the amount of bonus paid to Mr. Raju for 2009. Do you think the Board made a good arrangement with Mr. Raju? (b) Suppose the Selling and Administration costs included a $3/ unit variable cost component, which is incurred only When the goods re sold. Would the bonus paid to Mr. Raju for 2009 have been any different? (c) Comment on the effectiveness of the Management Control Systems at South Asian Electronics. What changes would you make, if any Step by Step Solution
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