Which of the following would NOT be a reason for decentralization?

a.Upper management can spend more time focusing on strategic planning and decision making.

b.Managers will make decisions for their own benefit, rather than the organization's benefit.

c.Lower level managers have better access to information.

d.Lower level managers with decision-making ability are more motivated.

2.

Nonesuch Company sells only one product at a regular price of $7.50 per unit. Variable expenses are 60 percent of sales and fixed expenses are $30,000. Management has decided to decrease the selling price to $6.00 in hopes of increasing its volume of sales. What sales dollar level is needed to obtain a before-tax profit of $60,000 when the selling price is $6.00 per unit?

a.$120,000

b.$360,000

c.$90,000

d.$72,000