g Chang Industries has 1,000 defective units of product that have already cost $13.00 each to produce. A salvage company will purchase the defective units as they are for $4.00 each. Chang's production manager reports that the defects can be corrected for $7.00 per unit, enabling them to be sold at their regular market price of $19.00. The incremental income or loss on reworking the units is: Multiple Choice $8,000 loss. $8,000 income. $7,000 loss. $15,000 income. $12,000 income.

Xt year baldwin plans to include an additional performance bonus of 0.25% in its compensation plan. this incentive will be provided in addition to the annual raise, if productivity goals are reached. assuming the goals are reached, how much will baldwin pay its employees per hour?

Afactory owner wants his workers to produce as many widgets as they can so he pays his workers based on how many widgets they produce. however, in order to make sure that the workers do not rush and produce a large number of poorly made widgets, he checks the widgets at random at various stages of their manufacture. if a defect is found in a widget, the pay of the entire section of the factory responsible for that defect is docked. how is this factory owner seeking to solve the agency conflict problem in this case?

T-comm makes a variety of products. it is organized in two divisions, north and south. the managers for each division are paid, in part, based on the financial performance of their divisions. the south division normally sells to outside customers but, on occasion, also sells to the north division. when it does, corporate policy states that the price must be cost plus 20 percent to ensure a "fair" return to the selling division. south received an order from north for 300 units. south's planned output for the year had been 1,200 units before north's order. south's capacity is 1,500 units per year. the costs for producing those 1,200 units follow