Profit-Sharing Program Assignment
Canisters Unlimited (8 points) The production manager at Canisters Unlimited needs to determine which product orders to fill. He has gathered the following data: Products 5900 1.000 1.500 Fixed cost (per week) Variable cost (per case) Selling Price (per case) Fill time per case (minutes) Cases ordered (per week) 33.00 $45.00 5240 12.00 $15.00 C 5600 45.00 $60.00 D 5600 16,00 $20.00 E $3.000 25.00 $35.00 F $1.500 35.00 $40.00 100 50 50 400 200 Assume that is a product is discontinued for the week, that product's fixed costs are not incurred during that weck. a) Calculate the break-even volume for products A-F. b) If the plant runs at full capacity (70 hours), which orders can be filled?
c) Due to a machine break-down, the manager estimates that only 40 hours of capacity will be available. Which products should be manufactured? Carson Distributions (8 points) Carson Distributions is a successful company selling environmentally-friendly equipment cleaning solutions to companies. Their current sales program rewards salesmen based on case sales volume, available to both sales personnel and staff. Bonuses are paid monthly. Sales are doing phenomenally due to a small group of employees who go the extra mile. One employee stated, “I love working here. I'm good at what I do and the company rewards me well for the effort I make.” Carson Distributions recently hired a new Human Resources manager who is contemplating changing the current bonus program to be more directly linked with the company's goals. The new bonus structure would pay out yearly and would be based on the company's ability to meet their target profit goals and the employee's personnel evaluation. The bonus would be divided equally among all employees in order to encourage a collaborative team atmosphere. Discuss what you think happened after implementing the new profit-sharing program.