Question

What do you think of the decision made by Adelaide Ladywell?

Answer 1

Answer:

Incomplete question. Here's likely the complete question;

In this, the first case, Lee High, the newly hired cost accountant, computes the variable cost and the fixed cost per unit at a volume of 500 units of Great Heath per week. He uses this information to develop some guidelines for pricing. His boss, Charlton Blackheath, endorses the guidelines and adds a feature: a higher commission on sales at a higher price.

When both High and Blackheath are away, the file clerk, Adelaide Ladywell, accepts an order below the guidelines and is fired...Evaluate the decision made by Adelaide.

Explanation:

Although Adelaide Ladywell acted presumptuously (without permission), her decision was still profitable. By looking at the costs per unit presented, the product's selling price wasn't lower than the fixed costs, therefore her actions were not a totally bad one.