Answer the questions and write 2 paragraphs for each question.
1.) Tom Klem is the controller of Watson Manufacturing, Inc. He estimates that the company's break-even point in sales dollars is $2 million. However, he recently told all of the regional sales managers that sales of $3 million were needed to break even. He also told them that if the company failed to break even, the sales force would be reduced in size by 40 percent. Klembelieves that his tactics will motivate the sales force to generate record profits for the upcoming year.
Is his approach to motivating employees ethical? What other approaches might he use?
2.) Assume that you are preparing a seminar on cost-volume-profit analysis for non-accountants. Several potential attendees have approached you and have asked why they should be interested in learning about your topic.
The individuals include:
A factory worker who serves as her company's labor union representative in charge of contract negotiations.
A purchasing agent in charge of ordering raw materials for a large manufacturing company.
A vice president of sales for a large automobile company.
A director of research and development for a pharmaceutical company.
Instructions
What unique reasons would you give each of these individuals to motivate them to come to your seminar?