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Manager: "If I can reduce my costs by $40,000 during this last quarter of 2011, my division will show a profit that is 10% above the planned level, and I will receive a bonus of $10,000. However, given the projections for the 4th Quarter, it does not look promising. I really need that $10,000. I know one way I can qualify; all I have to do is to lay off my three most experienced Sales executives. After all, most of the orders are in for the 4th Quarter, and I can always hire new Salespersons at the beginning of the next year.
Required
a. What is the right choice for the manager to make?
b. Why did the ethical dilemma arise?
c. What will be the implications of the decision of the manager to lay off the 3 experienced sales executives?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9400828

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