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Fiesta28 [93]
3 years ago
8

LO 1.4How can having a bonus system based purely on sales goals create an environment that encourages unethical behavior?

Business
1 answer:
ValentinkaMS [17]3 years ago
3 0

Answer:

Sometimes sales representatives could be able to tell lies, steal customers from other coworkers, get customers in an inappropriate way.

Explanation:

There will always be the possibility of a behavior aimed at financial obsession by the sales representatives involved in the bonus process.

It is important to consider how excessive greed could have a fundamental role to play improperly against the rest of the team of the sales force; Therefore, it is an incentive that while on the one hand, it could be very beneficial for the company by offering the possibility of a significant increase in the company's sales.

On the other hand, it is necessary to consider the possible problems of deception and greed that could be presented among the fellow sales representatives. In my opinion, this should be an activity that needs to be monitored very closely in order to be highly beneficial for the group in general.

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Answer:

Financial disadvantage from further processing = $(9)

Explanation:

<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.  </em>

<em>Also note that all cost incurred up to the split-off point (the cost of crushing) are irrelevant to the decision to process further .  </em>

                                                                                                  $

Sales revenue after crushing                                                55                          

Sales revenue at the split-off point                                        <u>81</u>

Additional sales revenue                                                       26

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Net income after further processing                                     <u> (9) </u>

Financial disadvantage from further processing = $(9)

<em>Kindly note that the allocated joint costs( cost of sugar and crushing) are irrelevant. This implies that whether or not the intermediate products are processed further the joint costs are irrelevant to the decision to process the beet juice further</em>.

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