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Lieber Case_introduaction


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Unformatted text preview: 00 and has been charged to the Skylights product line for internal reporting purposes. The CEO stated, “production should think of innovative ways to develop our products given the public sentiment surrounding the environment”. In a private conversation with the new accountant, Sam, the production manager mentioned that he “was very frustrated by the CEO’s comment and felt like quitting”. Sam receives a bonus based on quality and reliability. Prepared by J. Kroeker, 2011 © Sauder School of Business, UBC Page 1 The firm has had success in maintaining a high degree of loyalty amongst its workforce but the human resource manager stated confidentially, “there is no other work so employees are unlikely to quit”! The new accountant has just completed a study and found that the general overhead amount of $390,000 could be further classified as the following: Office Rent $ 60,000 Office administration $ 90,000 Salaries $ 200,000 Sales Commissions $ 40,000 Total $ 390,000 In an interview with the sales manager it was determined that the $90,000 for sales support was p...
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