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Paul was paying very close attention to his performance metrics this year because he was finally eligible for profit-sharing. If his division earns a profit
Paul was paying very close attention to his performance metrics this year because he was finally eligible for profit-sharing. If his division earns a profit margin of 6% (which would reflect a 2% increase over the prior year), he will receive 0.1% of the profits. It doesn't initially sound like much, but last year the division's profits exceeded $1 million. The following key financial outcomes were projected for his division at the beginning of this year. Sales Operating income Operating assets $17,010,200 1,126,000 10,006,000 Paul was feeling cautiously optimistic, as everything was on track by November-that is, until a crucial piece of equipment broke down and needed a significant overhaul. Paul could not believe his luck. He was afraid this unexpected asset replacement was going to throw off his positive performance metrics
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