Drop down options (in order):

Does not / does to some degree / will always

difficult / easy

does nothing to hold the manager responsible for bad decisions / does nothing to reward the manager for increasing production

not possible because beginning inventory was 0 / possible because there was beginning inventory

are only needed if we use the inventory metric / must be incorporated into reward function of the manager to be useful

More info 7 (Click the icon to view the information.) Ashley has decided to produce either 28,000,35,000, or 40,600 books. Read the Jemand. Do you think the following metrics will accomplish this objective? Show your work. a. Incorporate a charge of 5% 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.) Do you think the metric would accomplish the objective of discouraging managers from producing products in excess of demand? Adjusting for ending inventory mitigate the increase in inventory associated with excess production. Therefore, it may be to mechanically compensate for all of the increased income. In addition, it rom the organization's standpoint. o. Include nonfinancial measures when evaluating management and rewarding performance. One nonfinancial measure is to compute the excess production ratio. Determine the formula, then compute the ratio at each production level. (Round the ratios to two decimal places.)