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Anit [1.1K]
4 years ago
12

Jacob, a customer service representative for ab retailers, has seven levels of management between himself and the company's ceo.

in contrast, his friend rhonda, a customer service representative for yz retailers, has only four levels of management between her and the company ceo. compared to yz, jacob's company has what type of organizational structure?
Business
1 answer:
Assoli18 [71]4 years ago
6 0
Compared to YZ,<span> who has only four levels of management between her and the company CEO, </span> Jacob has seven levels of management between himself and the company's CEO's, which means that Jacob's company has tall type of organizational structure. The tall organizational structure is characterized with <span>CEO at the top and multiple levels of management.</span>
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Income Statement

Year 2

Sales Revenue                                                           $ 270,000

Direct Materials                                                            $63,000

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Variable Manufacturing Overheads                            $ 18,000

Fixed Manufacturing Costs                                        <u>  $ 41,000</u>

Gross Margin                                                                $ 115,000

Less Marketing & Administrative Costs

Fixed Marketing Costs                                                 $ 38,000

Variable Marketing Costs                                         <u>   $ 11,500</u>

<u>Net Profit                                                                    $ 65,500</u>

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Income Statement Under Absorption Method

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Direct Materials                                                            $63,000

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Variable Manufacturing Overheads                            $ 18,000

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Contribution Margin                                                  $ 144,500

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