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Sharon currently manages the polished chrome division of Oriole Broadway, a business that specializes in ceiling light fixtures. Its performance has been stable for the
Sharon currently manages the polished chrome division of Oriole Broadway, a business that specializes in ceiling light fixtures. Its performance has been stable for the past few years. However, the crystal division has been losing market share, while the rustic iron and chrome divisions have been growing. For the most part, executives feel that these changes are a result of customer preferences and current trends versus the quality or prices of their products. While they expect preferences to return to the crystal product line i the next five years, a short-term decision must be made now. Budgeted financial information for Oriole Broadway's upcoming fiscal year is presented below for each division. All fixed costs are currently assigned evenly to all divisions. Your answer is correct. If Oriole Broadway drops the crystal light fixtures line, it will save $147,000 in fixed costs (the dedicated manager's salary). In this case, will Oriole be better or worse off financially if it drops the crystal product line? By how much? Oriole would be by $ eTextbook and Media Attempts: 1 of 3 used Sharon earns a bonus set at 5% of her product line's actual operating income. How much is she currently expecting for her bonus? If sales in the chrome line and the iron line turn out as expected, how much will Sharon's bonus be if the crystal line is dropped? Current expected bonus $ Bonus if the crystal line is dropped $ If you were Sharon, would you try to sway the executives one way or the other in their decision to keep or drop the crystal product line? Would Sharon be better/worse off if they drop the Crystal product line and by how much. Sharon would be by $ eTextbook and Media Attempts: 0 of 3 used
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