please help me

Bert the Baker You are a management accountant with the divi- problem with my annual profit target of sional accounting office of a large grocery retailer, $150,000, which is 8.5 percent of sales. My Foodco. Your supervisor has asked you to go to complaint has nothing to do with the the Richville store to resolve an issue the store 8.5 percent profit target being more than manager has with the bakery manager about the the 5 percent for the overall store. A bakfairness of the accounting information used with a ery has a better chance of high profits than the other departments. In order to remain viable and to grow, Foodco Let me explain. First, I have little introduced sales and profit targets for retail stores. control over my labour costs. The store For an "A-type" store like the Richville store, the manager schedules employees who may weekly sales target is $12 per square foot, or for or may not be necessary for the bakery. this 20,000 square-foot store, $12.5 million a year. Second, the bakery operating statement Operating profits are to be 5 percent of target includes charges that have nothing to do sales, or $625,000 a year. with the bakery. For example, the store Typically, store managers delegate responsibil- manager's total salary is charged to the ity for sales and operating profits to department bakery because it is always profitable. managers, i.e., produce, dry goods, bakery, and Third, I do not get the chance to approve meats. With this system, the store managers and any of the costs charged to the bakery their department managers receive bonuses equal department. Fourth, I do not receive a to about one third of their salaries if the targets copy of the bakery operating statement. Fifth, and most important, there is no Upon arriving at the Richville store, you meet opportunity to plan the operating costs Stella, the store manager, and then Bert, the in conjunction with the store manager baker. Bert reiterates his complaint that the bonus and the other department managers. This system is based on unfair accounting. would allow costs to be managed more I am told that my sales target is $1.75 million a year or about $33,655 a Required As the management accountant, you week. I have no problem with sales. I can are to use the case approach to identify and provide customers with what they want at analyze the issues and make recommendations for competitive prices. However, I have a their resolution