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There were temporary Financial Statement profits, but she caused monetary harm to her employer to whom she had a fiduciary responsibility by draining large cash
There were temporary Financial Statement profits, but she caused monetary harm to her employer to whom she had a fiduciary responsibility by draining large cash amounts for her "bonus." She left the company drained of needed cash which was invested in inventory that could be going "stale" or be unsaleable. After putting her bonus in a foreign bank account, Mia resigned her position to look for "other" opportunities. She spent a few months vacationing in Cancun Mexico. Mia is back from her extended vacation and is now looking for new employment. Prompt: Mia asks you for a written employment recommendation and/or to be her reference to a new employer. Assuming you know all the related facts -- Upload/attach/submit your recommendation to a future employer, and/or your written response made directly to Mia. Refer back to Mia's Bonus. Facts listed in the Mia's Bonus problem are reviewed below: Mia was hired during January 2021 to manage the home products division of GetRichQuick Products. As part of her employment contract, she was told that she would get $5,000 of additional bonus for every 1% increase that the division's profits exceeded those of the previous year. Soon after coming on board, Mia met with her plant managers and explained that she wanted the plants to be run at full capacity. Previously, the plant had employed just-in-time inventory practices and had consequently produced units only as they were needed. Mia stated that under previous management the company had "missed out" on too many sales opportunities because it didn't have enough inventory on hand. Because previous management had employed just-intime inventory practices, when Mia came on board there was virtually no beginning inventory. The selling price and variable costs per unit remained the same from 2020 to 2021 . Here is additional information
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