Question 3 (-11 ) Howard Company operates three large beauty and barber shops across the city. The profits have been amazing for the last 20 years and the company has been able to give the executives 25% end of year bonuses every year. This year the profits are down. It looks like the end of year bonus for executives will have to be reduced to 10% and the executives ARE NOT HAPPY. John had an idea. He said, "Let's fire the employees, hire them back as independent contractors, and make them pay rent to us every month. Then we won't have to pay their social security or life insurance or medical insurance. As independent contractors they will have to pay for all their own shampoo and other supplies. With the savings we can give the usual bonuses." Carmen said, "Peter has worked for us for all 20 years we've been open and now his wife has cancer. He needs that medical insurance. Independent contractors only get paid when they have customers and they will have a lot of additional expenses to pay. Their income isn't steady. It can vary from week to week. Mary is a single mother with two kids. She really needs to know how much money she will take home every month. This isn't fair to the employees. Let's find another way." Carmen enacted THREE provisions to raise money that did not conflict with her ethical code. Can you find them? Reducing employees' benefits. (2) Giving the employees the option of changing to independent contractors if they so desired. Reducing employees' pay Firing the employees that made the most money. 5 Start a big advertising campaign that would raise sales enough that the executives could have their bonuses Reduce expenses by changing power companies, finding a cheaper supplier, and finding a less expensive maintenance company