Joy, who runs a small electronics sales and repair business, is trying to become a better business manager. She believes she has a solid understanding of accounting but wants tips on how to run an ethical business. For instance, she wants to pay her employees fairly while being efficient. Joy has heard of terms such as corporate governance and corporate social responsibility but isn't sure about what they mean or how to incorporate them into her business. Joy has been budgeting a monthly salary of $3,000 each for her two employees. They typically work 140 hours a month, while she works 200 hours. However, she fears this may not be the best way to budget things since she pays them an hourly rate of $20 per hour. She has also noticed that she is paying CPP of 5% and EI of 2%. Last month, the employees worked 138 hours each and total salary expense amounted to $5,900. Joy estimates a repair, on average, takes an hour. Her employees completed 280 repairs last month. Joy recently read an article about responsibility centers and how to evaluate them. She invested $50,000 into her store and is generating revenues of $8,000 per month. This leaves her near break even but it has been an improvement from when she first started six months ago ($3,000 monthly loss). With growing revenues and ongoing investment in advertising, Joy projects that her revenues will increase by 30% in a few months, with expenses increasing only 10%. She wonders how the business's metrics will evolve from when she first started to now, and from now to a few months later. She also wants some advice on how to evaluate employees. They are not only responsible for repairing electronics, but also making sales when she is working on administrative tasks. She is wondering if she will eventually have to hire a part-time or full-time salesperson when there is enough management work to keep herself occupied and the current employees occupied with repairs. She wants to weigh the pros and cons of hiring on salary commission versus salary.

Analyze Joy's business and advise her on the matters raised in the case. Make sure your recommendations are well supported by quantitative and qualitative analysis which ties to the case facts.