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Requirements 1. Assume that Alexa is partly correct in her assessment of the report. Upon further investigation, it is determined that 5% of the order
Requirements 1. Assume that Alexa is partly correct in her assessment of the report. Upon further investigation, it is determined that 5% of the order processing costs and 20% of the delivery costs would not be avoidable if HRS were to drop Antonia's. Would HRS benefit from dropping Antonia's? Show your calculations. 2. Alexa's bonus is based on meeting sales targets. Based on the preceding information regarding gross margin percentage, what might Alexa have done last quarter to meet her target and receive her bonus? How might HRS revise its bonus system to address this? 3. Should Bryan rework the numbers? How should he respond to Alexa's comments about making Antonia's look more profitable? Bryan hands Alexa the following analysis of Antonia's activity during the last quarter, taken from HRS's activity-based costing system: (Click the icon to view Antonia's activity for the last quarter.) (Click the icon for additional information.) Read the requirements. Requirements 1. Assume that Alexa is partly correct in her assessment of the report. Upon further investigation, it is determined that 5% of the order processing costs and 20% of the delivery costs would not be avoidable if HRS were to drop Antonia's. Would HRS benefit from dropping Antonia's? Show your calculations. 2. Alexa's bonus is based on meeting sales targets. Based on the preceding information regarding gross margin percentage, what might Alexa have done last quarter to meet her target and receive her bonus? How might HRS revise its bonus system to address this? 3. Should Bryan rework the numbers? How should he respond to Alexa's comments about making Antonia's look more profitable? Bryan hands Alexa the following analysis of Antonia's activity during the last quarter, taken from HRS's activity-based costing system: (Click the icon to view Antonia's activity for the last quarter.) (Click the icon for additional information.) Read the requirements
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