Answer:
True
Explanation:
The purpose of any business is to make profit, which is from the difference between revenues (price of product multiplied number of product sold) with the cost of goods sold (average total cost multiplied number of product sold).
In short, the profit = (price - average total cost) x number of product sold.
Normally the price must be above/ higher than cost, so that the firm can have profit. Sometime the price in the market go down, so the firm have have to adjust down its price also to maintain customer's purchases.
Once its price is down, but the firm's average total cost is still same as previous, the firm can not have profit as previously. The firm may bear this situation as long as its capital capacity allowed, but will not be too long.
Based on the information given the dollar amount of the discount points is $3,600.
<h3>Discount:</h3>
First step is to calculate the down payment
Down payment=$200,000-($200,000×10%)
Down payment=$200,000-$20,000
Down payment=$180,000
Second step is to calculate the discount points
Discount point=Down payment× Discount points
Discount point=$180,000×2%
Discount point=$3,600
Inconclusion the dollar amount of the discount points is $3,600.
Learn more about discount here:brainly.com/question/24286983
Answer:
The given scenario highlights that Mr. B has submitted a financial report which possess some irregularities. According to the budget Mr. B has to provide the finance to the purchase department rather than the facilitating department. Even though the facilitating department is operating successfully, it is unethical to divert the finance to the other department rather than to the specified one.
Thinking ethically, Mr. R who is operating in the middle management of the organization has the responsibility to report this unethical act for the proper operations of the organization. Some of the individuals or positions who can be interested in this problem can be the Human resource manager or the public relations manager who can handle the issue in a diplomatic manner. As a middle manager he can also highlight the issue to the account team and also to his direct manager.
Mr. R can face the legal implications as he is misusing his authority. It is legally punishable If someone one in the managerial position is misusing his authority.
One of the ethical models which can be applied here can be Utilitarianism. This model suggests that the action will be considered as good if the result or the outcome is good. According to this model if the diversion of the finance to the sustainability initiative produces good results for the company then it can be considered as a right act rather than considering unethical.
Next ethical model can be the moral relativism. According to this model the people from outside circle cannot judge the activities of the people considering ethical or unethical. Here Mr. B is the boss of Mr. R who is the top manager of the organization. He can posses some strategies and authorities to make the operations of the organization sustainable. Hence Mr. R may not hold the right to judge his actions.
When making decision regarding the present scenario, Mr. R should consider both the ethical models. If the outcome is good and the manager is having the authority to make critical decisions like mentioned in the scenario then the activity cannot be considered as unethical.
Considering the scenario and the ethical models the middle manager Mr. R can conduct a research for identifying the outcome of Mr. B’s action. If he identifies good outcome then he can leave the issue. If there is any personal interest for MR. B and not positive outcome for the company then he can highlight this issue.
Explanation:
Answer and Explanation:
The manager of division A has the advantage of always selling at a profit since his department is positioned to always sell at profit to division B. However, selling at a transfer price to another department has the tendency to bring an incoherence of operations and decisions in the organization as a whole. If transfer price is high, it is possible that employees of department B may be demotivated as the high costs may negate operations and therefore look bad on their performance.