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10th Edition
ISBN: 9781337605656
Author: CROSS
Publisher: CENGAGE L
bartleby

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Chapter 20, Problem 2RE
Summary Introduction

Case summary: A person RS is working as a traveling salesperson for a person AW. The sales of RS constituted ninety-percent of RS work time. The person RS works 50 hours per week but was not paid for the extra hours. The new supervisor CB has claimed that the person RS has been inflating the sales call which is reported and should submit to a polygraph test. The person RS submitted a letter from his wife’s physician to the person AWwhich stated that she is ill and is in need of daily care. RS took leave of several months to take care of his wife. The person RS was terminated from his position as the position was merged with the adjacent territory.

To find: The time for which RS can be allowed to take care of his injured spouse.

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Scarce resource; discontinued product lines; negative contribution marginThe officers of Bardwell Company are reviewing the profitability of the company’s four products and the potential effects of several proposals for varying the product mix. The following is an excerpt from the income statement and other data.   Total Product P Product Q Product R Product S Sales $62,600 $10,000 $18,000 $12,600 $22,000 Cost of goods sold (44,274) (4,750) (7,056) (13,968) (18,500) Gross profit $18,326 $5,250 $10,944 $(1,368) $3,500 Operating expenses (12,004) (1,990) (2,968) (2,826) (4,220) Income before taxes 6,322 $3,260 $7,976 $(4,194) $(720) Units sold   1,000 1,200 1,800 2,000 Sales price per unit   $10.00 $15.00 $7.00 $11.00 Variable cost of goods sold   2.50 3.00 6.50 6.00 Variable operating expenses   1.17 1.25 1.00 1.20 Each of the following proposals is to be considered independently of the other proposals. Consider only the product changes stated in each…
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