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Book Title
10th Edition
ISBN: 9781337605656
Author: CROSS
Publisher: CENGAGE L
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Chapter 22, Problem 4RE
Summary Introduction

Case summary: The company J has 250 workers in it. Few employees started an employee’s union known as JEU. J denied to recognize such union to which employees petitioned in National Labor Relations Board (NLRB) for election. Later in June, NLRB conducted the election with a result that almost all the employees were in favor to create a union. NLRB certified the union JEU. At later stage some differences arose between J and JEU regarding wages and benefits of the employees. A new union was elected which was not able to work properly due to the lack of support and some employees went on strike without union support.

To find: Applicability of Labor-Management Relations Act in the person R’s walkout.

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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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