(a)
Change in Profit by using new technique = 20%
Therefore 2% bonus will be given to each employee.
Change in Profit without new technique = 0
Therefore no bonus as per old technique
Therefore change in bonus
Kevins = $350000 x 2% = $7000
Michelle's = $410000 x 2% = $8200
(b)
Change in Profit by using new technique = 20%
Therefore 2% bonus will be given to each employee.
Change in Profit without new technique = $2.5 million i.e. $2.5/$7
i.e. 35.7% increase
Therefore 3% bonus will be given as per old technique
Therefore if they employee new techniques, bonus will decrease by
Kevins = $350000 x 2% - $350000 x 3% = $3500 or ($3500)
Michelle's = $410000 x 2% - $410000 x 3% = $4100 or ($4100)
Magnolia Manufacturing makes wing components for large aircraft. Kevin Choi is the production manager, responsible for...
Magnolia Manufacturing makes wing components for large aircraft. Kevin Choi is the production manager, responsible for manufacturing, and Michelle Michaels is the marketing manager. Both managers are paid a flat salary and are eligible for a bonus. The bonus is equal to 1 percent of their base salary for every 10 percent profit that exceeds a target. The maximum bonus is 6 percent of salary. Kevin's base salary is $280,000 and Michelle's is $340,000. The target profit for this year...
Magnolia Manufacturing makes wing components for large aircraft. Kevin Choi is the production manager, responsible for manufacturing, and Michelle Michaels is the marketing manager. Both managers are paid a flat salary and are eligible for a bonus. The bonus is equal to 1 percent of their base salary for every 10 percent profit that exceeds a target. The maximum bonus is 6 percent of salary. Kevin's base salary is $380,000 and Michelle's is $440,000. The target profit for this year...
Magnolia Manufacturing makes wing components for large aircraft. Kevin Choi is the production manager, responsible for manufacturing, and Michelle Michaels is the marketing manager. Both managers are paid a flat salary and are eligible for a bonus. The bonus is equal to 1 percent of their base salary for every 10 percent profit that exceeds a target. The maximum bonus is 6 percent of salary. Kevin's base salary is $230,000 and Michelle's is $290,000. The target profit for this year...
Magnolia Manufacturing makes wing components for large aircraft. Kevin Choi is the production manager, responsible for manufacturing, and Michelle Michaels is the marketing manager. Both managers are paid a flat salary and are eligible for a bonus. The bonus is equal to 1 percent of their base salary for every 10 percent profit that exceeds a target. The maximum bonus is 5 percent of salary. Kevin's base salary is $270,000 and Michelle's is $330,000. The target profit for this year...
Magnolia Manufacturing makes wing components for large aircraft. Kevin Choi is the production manager, responsible for manufacturing, and Michelle Michaels is the marketing manager. Both managers are paid a flat salary and are eligible for a bonus. The bonus is equal to 1 percent of their base salary for every 10 percent profit that exceeds a target. The maximum bonus is 5 percent of salary. Kevin’s base salary is $180,000 and Michelle’s is $240,000. The target profit for this year...
Magnolia Manufacturing makes wing components for large aircraft. Kevin Choi is the production manager, responsible for manufacturing, and Michelle Michaels is the marketing manager. Both managers are paid a flat salary and are eligible for a bonus. The bonus is equal to 1 percent of their base salary for every 10 percent profit that exceeds a target. The maximum bonus is 5 percent of salary. Kevin’s base salary is $200,000 and Michelle’s is $260,000. The target profit for this year...
Magnolia Manufacturing makes wing components for large alrcraft. Kevin Chol is the production manager, responsible for manufacturing, and Michelle Michaels is the marketing manager. Both managers are paid a flat salary and are eligible for a bonus. The bonus is equal to 1 percent of their base salary for every 10 percent profit that exceeds a target. The maximum bonus is 5 percent of salary. Kevin's base salary is $370,000 and Michelle's Is $430,000. The target profit for this year...
Magnolia Manufacturing makes wing components for large aircraft Kevin Chol is the production manager, responsible for manufacturing, and Michelle Michaels is the marketing manager Both managers are paid a flat salary and are eligible for a bonus. The bonus is equal to 1 percent of their base salary for every 10 percent profit that exceeds a target. The maximum bonus is 6 percent of salary Kevins base salary is $230,000 and Michelle's is $290,000 The target profit for this year...
Magnolia Manufacturing makes wing components for large aircraft. Kevin Choi is the production manager, responsible for manufacturing, and Michelle Michaels is the marketing manager. Both managers are paid a flat salary and are eligible for a bonus. The bonus is equal to 1 percent of their base salary for every 10 percent profit that exceeds a target. The maximum bonus is 5 percent of salary. Kevin’s base salary is $360,000 and Michelle’s is $420,000. The target profit for this year...
Item1 1 points Item Skipped eBookPrintReferences Check my work Check My Work button is now enabledItem 1Item 1 1 points Item Skipped Magnolia Manufacturing makes wing components for large aircraft. Kevin Choi is the production manager, responsible for manufacturing, and Michelle Michaels is the marketing manager. Both managers are paid a flat salary and are eligible for a bonus. The bonus is equal to 1 percent of their base salary for every 10 percent profit that exceeds a target. The...