Dania Khalid was hired during January 2014 to manage the home products division of Saco Products....
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/664f763d2c9f4_644664f763c9f671.jpg)
Transcribed Image Text:
Dania Khalid was hired during January 2014 to manage the home products division of Saco Products. As part of her employment contract, she was told that she would get $5,000 of additional bonus for every 1% increase that the division's profits exceeded those of the previous year. Soon after coming on board, Dania met with her plant managers and explained that she wanted the plants to be run at full capacity. Previously, the plant had employed just-in-time inventory practices and had consequently produced units only as they were needed. Dania stated that under previous management the company had missed out on too many sales opportunities because it didn't have enough inventories on hand. Because previous management had employed just-in-time inventory practices, when Dania came on board there was virtually no beginning inventory. The selling price and variable costs per unit remained the same from 2021 to 2022. Additional information is provided below. 2021 2022 Net income Units produced Units sold $300,000 $525,000 25,000 30,000 25,000 25,000 Fixed manufacturing overhead costs $1,350,000 $1,350,000 Fixed manufacturing overhead costs $54 per unit Required: $45 A. Calculate Dania's bonus based upon the net income shown above. B. Re-compute the 2021 and 2022 results using variable costing, c. Re-compute Dania's bonus under variable costing. D. Was Dania's action unethical? Do you think any actions need to be taken by the company? Dania Khalid was hired during January 2014 to manage the home products division of Saco Products. As part of her employment contract, she was told that she would get $5,000 of additional bonus for every 1% increase that the division's profits exceeded those of the previous year. Soon after coming on board, Dania met with her plant managers and explained that she wanted the plants to be run at full capacity. Previously, the plant had employed just-in-time inventory practices and had consequently produced units only as they were needed. Dania stated that under previous management the company had missed out on too many sales opportunities because it didn't have enough inventories on hand. Because previous management had employed just-in-time inventory practices, when Dania came on board there was virtually no beginning inventory. The selling price and variable costs per unit remained the same from 2021 to 2022. Additional information is provided below. 2021 2022 Net income Units produced Units sold $300,000 $525,000 25,000 30,000 25,000 25,000 Fixed manufacturing overhead costs $1,350,000 $1,350,000 Fixed manufacturing overhead costs $54 per unit Required: $45 A. Calculate Dania's bonus based upon the net income shown above. B. Re-compute the 2021 and 2022 results using variable costing, c. Re-compute Dania's bonus under variable costing. D. Was Dania's action unethical? Do you think any actions need to be taken by the company?
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
You have the following frequency distribution of the Travel Time to work for residents in South Beach neighborhood. Please answer the questions that follow after the Frequency Table. Travel Time a....
-
What is the Federal Open Market Committee (FOMC), and why is it important?
-
If the noncash assets are sold for $100,000 cash, determine the amount of cash, if any, that partner A will receive upon liquidation. The trial balance for the ABC Partnership before bankruptcy is as...
-
The general manager represents the hotel and is responsible for its profitability and performance. Because of increased job consolidation, he or she also is expected to attract business and to...
-
DeZurik Corp. had the following owners equity section in its June 30, 2010, balance sheet (in thousands, except share and per share amounts): Required: a. Calculate the par value per share of...
-
On June 29, the entity completed negotiations and signed a contract to provide services to a new client at an annual rate of 36,000
-
\f
-
Use the following information to determine the net income or loss of a plumber, operating as a sole trader. Cash A/C 22,000 Plumbing supplies A/C 5,000 Plumbing service revenue A/C 40,000 Wages...
-
Digital voltmeter measures electrical output of a pressure transducer. Find the design state uncertainty of the system. The data sheet for the transducer (MPX5010DP)is shown below Resolution: 450...
-
6. Nono Corp. has a profit margin ratio of 7.8% and a total asset turnover ratio of 1.77 times. Accounts receivables are $88,100 while total assets are $823,700. Given all this information for NoNo...
-
1. How do you think the US Economy is doing right now? Scale of 1-10 with 1 a depression and 10 a huge boom. 2. What factors and specific data do you rely upon to reach that conclusion? Here you must...
-
You have just started a sales job in a department store. Your pay consists of a base salary and a commission. The base salary is $10,000.00. The scheme shown below is used to determine the commission...
-
Please help?! This assignment covers section 7.2. Answer the questions below, making sure to show your work. You may type your work and solutions directly into the text box that is available OR you...
-
Write a program to move a signed number from smaller register to bigger register. Hint: movzx ax, bl Topic: Data Related Operators and Directives in assembly language
-
Describe the nature of disability income insurance and differentiate among the various types of disability income insurance contracts
-
Describe the operation of a typical preexisting conditions exclusion in a disability income policy.
-
List the four definitions of disability thatmay be found in disability income contracts. Which is the most beneficial to the insured? Which is the narrowest form of coverage?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App