Kaiser Company Just Hired Its Fourth Production Manager in Three

question 183

Essay

Kaiser Company just hired its fourth production manager in three years. All three previous managers had quit because they could not get the company above the break-even point, even though sales had increased somewhat each year. The company was operating at about 60 % of plant capacity. The flatware industry was growing, so increased sales were not out of the question.
I. R. Thinking took the job as manager of the production division with a very attractive salary package. After interviewing for the position, he proposed a salary and bonus package that would give him a very small salary but a large bonus if he took the operating income (using absorption costing) above the breakeven point during his very first year.
Required:
What do you think Mr. Thinking had in mind for increasing the company's operating income?

---

Definitions:

Billing Issues

Problems or disputes arising from the process of invoicing for goods or services, including errors, unauthorized charges, or discrepancies.

Product Managers

Individuals responsible for overseeing the development, marketing, and sale of a product or product line.

Adaptive Selling

A sales approach that involves altering sales behaviors and techniques based on the sales situation and customer needs.

Consultative Selling

A sales approach where the seller acts as an advisor, understanding customer needs and offering solutions that meet those needs.