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Pavlova-9 [17]
3 years ago
9

As a production manager, George is accountable for resource budgets that are highly sensitive to overtime pay rates. As a sales

manager, Lucas needs to meet customer delivery schedules at all costs to avoid losing contracts that drive his commissions. The conflict that arises between these managers is the result of _________.A. unobtrusive power.
B. overlapping authority.
C. status inconsistencies.
D. distributed negotiation.
E. different evaluation and reward systems.
Business
2 answers:
Klio2033 [76]3 years ago
5 0

Answer:

The answer to this question is Option E. different evaluation and reward systems.

Explanation:

As a production manager, George is accountable for resource budgets that are highly sensitive to overtime pay rates. As a sales manager, Lucas needs to meet customer delivery schedules at all costs to avoid losing contracts that drive his commissions. The conflict that arises between these managers is the result of different evaluation and reward systems.

Nostrana [21]3 years ago
4 0

Answer:

E) different evaluation and reward systems.

Explanation:

In this scenario, George is evaluated according to productive standards, specially following the production budget which generally requires to minimize overtime pay.

On the other hand, Lucas is evaluated based on his sales performance, which means his team must sell the largest possible amount of goods.

The problem is that sometimes Lucas's needs will be in conflict with George's needs, e.g. A customer requires a large amount of merchandise that is not readily available. Lucas needs George to make his workers work overtime, but that would increase George's costs. Since George doesn't benefit, instead he is hurt by that overtime work, he will refuse to do it. That may result in Lucas losing that big sale.

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Answer:

$125,165.49

Explanation:

Daily Sales Outstanding is computed by dividing Average Accounts Receivable over Daily Credit Sales.

In this case, if the DSO is 71, then the Daily Credit Sale is $2,887.3239($205,000/71).

Then, the old sales is $1,053,873.24 ($2887.3239 x 365).

If this is reduced by 15% after the policy is implemented, the new sales is $895,792.25 ($1,053,873.23-15%) and the new daily sales is $2,454.23 ($895,792.25/365).

Using these DSO formula, the new Accounts Receivable level will be $125,165.49 (51 x $2,454.23).

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