Question
You have recently started a summer job at Painless Dental Supplies. You hope to impress them with your work ethic and accounting knowledge. In order
You have recently started a summer job at Painless Dental Supplies. You hope to impress them with your work ethic and accounting knowledge. In order to increase sales, the company is considering paying their salespersons a commission of 1% of sales in addition to their monthly salaries of $2,500. The Vice-President of Finance, Brad Paisley, asked you to compute a new break-even point in sales if the new compensation plan is implemented and to calculate what the operating profit would be if sales increased by 15%. After careful analysis, you presented your results to the companys Executive team including the President and Vice-President. Your report indicated that the operating profit of the company would increase significantly and the break-even point would decrease. Based on your report, the Executive Team agreed to implement the commission plan. A week after the plan was adopted and announced to the salespersons, you noticed that you made an error in your calculations. You forgot to include the Salespersons monthly salaries of $2,500. You are worried about what to do. If you tell Brad Paisley of your error, he will have to tell the President and any chance of obtaining a full time job will likely disappear. Required: 1. What is your ethical dilemma? 2. If you do not tell Brad about your error, will that action be ethical? Explain why it is or is not ethical. ASAP
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