In this case the goal was to identify seven different industries and their differences based on the
balance sheet provided. When analyzing an organization, it is important to know that there are
a variety of factors tha
1. What was the purpose of the change in bonus structure?
The purpose of the change is because the managing director thought that the operating profit measures were too narrow and he wanted to
improve performance measurements.
2. Calculate the b
1. For what purposes does Body Glove use its budgeting system? Which purposes are emphasized?
Body Glove uses its budgeting system for employee bonuses, to recognize revenues and profits
early, inventory levels, fashion trends, customer demands
1. Evaluate the proposed performance measurement and incentive plan?
The old incentive plan was not tied to performance. This shows that performance based
incentives were not as important to management. This is a mistake that most manager make
1. How should each of the issues described above be resolved?
Administration costs: The University should make these costs a budgeted amount and these cost should
be charged to specific schools that identify with utilizing these costs. This woul
1. What should John Lynch do?
Due to increase in the price of feed, the egg division is operating at a loss and its employees will
not have the opportunity to get their bonuses. Gary, the manager of the egg division, made a
good point with the c
1. Question 1 in excel spreadsheet
2. Why were Lourdes and Greg so interested in having the company change its cost system?
Lourdes and Greg are interested in having the company change its costs system because of the
concerns that they have. Lou
1. Do you agree with each of them? If not, can you suggest better methods of making the
adjustments for the state purpose?
With the new calculations that the consultant made, I do not agree with some of the analysis.
Some of the semivariable and
1. Is the subsidiary really a problem to Prestige Telephone Company?
With the information given in the case, there are two scenarios that may occur either
close down the subsidiary or sell it. At first glance on the balance sheet it seems like t
1. What action should Hans Thorborg take? Why?
Thornborg should take Henks suggestion of just producing the plastic rings. He should stop the
production of steel and try to sell the remaining steel inventory that they current have. Based on