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 personRS reported the polygraph test request to the U.S Department of labor which has prohibited the test. The person RS submitted a letter from his wife’s physician to the person AW which stated that she is ill and is in need of daily care. RS is taking leave of several months to take care of his wife. The person AW has sixty-three employees at the time. The person RS was terminated from his position as the position was merged with the adjacent territory. To find: The reinstating of RS under key employee exception by AW. Explanation: A key employee is one who has major ownership or decision making role in the business. In the above case, RS is considered as a key employee as he constituted ninety percent of work time sale. According to FMLA, employees are allowed to take time off from work for family or medical reasons. FMLA provides unpaid leave of twelve weeks within a period of twelve-month. The wife of RS got injured after falling from a ladder and he took leave until December 2018 to take care of his wife. AW had eliminated RS from his position and combined his sales territory with an adjacent territory. Under FMLA act, the job of RS is not protected. Thus, the person AW can avoid reinstating the person RS.

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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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Chapter 20, Problem 4RE

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 personRS reported the polygraph test request to the U.S Department of labor which has prohibited the test. The person RS submitted a letter from his wife’s physician to the person AW which stated that she is ill and is in need of daily care. RS is taking leave of several months to take care of his wife. The person AW has sixty-three employees at the time. The person RS was terminated from his position as the position was merged with the adjacent territory.

To find:The reinstating of RS under key employee exception by AW.

Explanation:

A key employee is one who has major ownership or decision making role in the business. In the above case, RS is considered as a key employee as he constituted ninety percent of work time sale. According to FMLA, employees are allowed to take time off from work for family or medical reasons. FMLA provides unpaid leave of twelve weeks within a period of twelve-month. The wife of RS got injured after falling from a ladder and he took leave until December 2018 to take care of his wife. AW had eliminated RS from his position and combined his sales territory with an adjacent territory. Under FMLA act, the job of RS is not protected. Thus, the person AW can avoid reinstating the person RS.

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