1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Norma-Jean [14]
3 years ago
15

Becky Knauer recently resigned from her position as controller for Shamalay Automotive, a small, struggling foreign car dealer i

n Upper Saddle River, New Jersey. Becky has just started a new job as the controller for Mueller Imports, a much larger dealer for the same car manufacturer. Demand for this particular make of car is exploding, and the manufacturer cannot produce enough to satisfy demand. The manufacturer’s regional sales managers are each given a certain number of cars. Each sales manager then decides how to divide the cars among the independently owned dealerships in the region. Because of the high demand for these cars, dealerships all want to receive as many cars as they can from the regional sales manager.
Becky’s former employer, Shamalay Automotive, receives only about 25 cars each month. Consequently, Shamalay is not very profitable.
Becky is surprised to learn that her new employer, Mueller Imports, receives more than 200 cars each month. Becky soon gets another surprise. Every couple of months, a local jeweler bills the dealer $5,000 for "miscellaneous services." Franz Mueller, the owner of the dealership, personally approves payment of these invoices, noting that each invoice is a "selling expense." From casual conversations with a salesperson, Becky learns that Mueller frequently gives Rolex watches to the manufacturer’s regional sales manager and other sales executives. Before talking to anyone about this, Becky decides to work through her ethical dilemma. Put yourself in Becky’s place.
Requirements
1. What is the ethical issue?
2. What are your options?
3. What are the possible consequences?
4. What should you do?
Business
1 answer:
andre [41]3 years ago
3 0

Answer:

1. The ethical issue here is that Becky Knauer's new boss usually bribes the sales manager of a car dealership to get more quota of cars. He is doing this because the car is in high demand. The higher his quota, the higher the number of cars. The higher the number of cars, the more of them he can sell. The more he can sell, the higher the profits.

Here is the dilemma.  

First, the action of Becky's boss is wrong, but it is also helping to keep the business afloat thus translating to securing her job and probably sustaining the pay she is receiving. We know this because Becky's former employer who receives just 25 cars a month is not very profitable.  

Becky as the Controller, however, is in charge of Compliance. The actions of her boss are unethical. She has to flag such issues and report to him.

Franz is the owner of the dealership and is on the top of the 'food chain'. There is no one else within the organisational structure to report the matter to. He is supposed to lead by example. He, as the owner of the organisation, however, is leading with a bad example because other sales personnel know about these shady transactions.

2.  Becky's options are as follows:

A. If she is too scared to confront her boss, she can decide to resign. She would have lost her job. There is no guarantee she will get another and the unethical practices will continue.

B. She can raise the issue with her boss and point out the dangers of continuing in such practice. By doing this, she is ruling out the possibility that he somehow is unaware of the dangers of his actions. In raising the matter with her boss, she must do this in black and white.

The above decision can go either left or right.  

Right means that her boss comes to understand the import of his actions and makes amends. Left means, he gets jittery and fires her.

3. As stated above, Franz may fire Becky if she flags his actions.

If this happens, she can take the matter to the State of New Jersy Motor Commission and possibly sue Franz for wrongful dismissal.      

Cheers!

You might be interested in
Manta Ray Company manufactures diving masks with a variable cost of $31. The masks sell for $40. Budgeted fixed manufacturing ov
riadik2000 [5.3K]

Answer:

When there is no change in the beginning and ending units of inventory i.e the  units sold are equal to the units produced,the income under variable and absorption costing remains the same which is the condition in the given question.

Explanation:

If we have 80,000 units produced and sold then the income under both methods will be the same.

Manta Ray Company

Income Statement Variable Costing

Sales                $40*80,000=  $ 3200,000

Variable Costs $ 31*80,000=  $ 2480,000

Contribution Margin  $ 720,000

Less Fixed Costs $  $712,800

Gross Profit $ 7200

Manta Ray Company

Income Statement Absorption Costing

Sales                $40*80,000=  $ 3200,000

Variable Costs $ 31*80,000=  $ 2480,000

Fixed Costs $  $712,800

Gross Profit $ 7200

When there is no change in the beginning and ending units of inventory i.e the  units sold are equal to the units produced,the income under variable and absorption costing remains the same which is the condition in the given question.

If there is an increase in the inventory units ( ie. production is less than the Sales) the fixed manufacturing overhead cost is released from inventory and deducted from variable income.

Similarly when the inventory units decrease  ( ie. production is more than the Sales)  the fixed manufacturing overhead cost is deferred from inventory and added to variable income.

8 0
3 years ago
Mr. Smith believes that there is going to be rise in the equities market. Based on this information, what would allow Mr. Smith
White raven [17]

Answer:

The answer is 'Buy a Stock Index Future'

Explanation:

To take best advantage of this situation, Mr Smith should go long(buy) on this stock.

Stock Index Future js a method of derivates. Futures, like forward contract is a forward commitment which obligates the buyer to purchase an asset or the seller to sell an asset and have a predetermined future date and price. Future is used to hedge against worse future situations.

7 0
3 years ago
Question 10 help needed please
ella [17]
I think arbitration
5 0
3 years ago
Read 2 more answers
Advantages and disadvantages of a trade union
Alona [7]

Answer:

ADVANTAGE

Increase wages for its members

Counterbalance Monopsony Power

Represent workers

productivity deals

DISADVANTAGE

Ignore non-members

create unemployment

Wage-inflation

lost productivity

5 0
3 years ago
Read 2 more answers
Astro Mile ​& Co. owns vast amounts of corporate bonds. Suppose Astro Mile buys $ 1,400,000 of BitterCo bonds at face value
Inessa [10]

Answer:

Dr bond investment             $1,400,000

Cr cash                                                        $1,400,000

Cash interest is  $112,000.00

Interest revenue for the year is also $ 112,000.00  

Explanation:

The cash paid for the investment is $1,400,000, this would be debited to bond investment and credited to cash since it is an outflow of cash from the business.

At six-month interval, coupon receivable=$1,400,000*8%*1/2=$ 56,000.00  

annual coupon receivable=$ 56,000.00 *2=$ 112,000.00  

7 0
3 years ago
Other questions:
  • BE22-4 Gundy Company expects to produce 1,200,000 units of Product XX in 2017. Monthly production is expected to range from 80,0
    15·1 answer
  • Suppose two economists are debating a tax reform bill. Both economists agree that the bill would increase the after-tax income o
    14·1 answer
  • How would one demonstrate empathy in a problem resolution with a customer if they are prohibited from helping the customer?
    11·1 answer
  • Which of the following statements is​ correct? A. GDP includes nonmarket production but is not a measure of a​ nation's overall
    5·1 answer
  • The grocery store has bulk pecans on sale, which is great since you're planning on making 7 pecan pies for a wedding. how many p
    6·2 answers
  • Dreyfus points a gun at Eton, threatening to shoot him if he does not steal from his employer, Freddy’s Gas & Shop store, an
    15·1 answer
  • Animated comedy show, American Family, is being broadcast in Houston. A potential advertiser wants to know how popular the show
    9·1 answer
  • The board of directors of Chestnut Inc. approved a restructuring plan on November 1, Year 1. On December 1, Year 1, Chestnut pub
    12·1 answer
  • What is trust ownership in real estate
    13·1 answer
  • What's price in economics
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!