Plate Company Just Hired Its Fourth Production Manager in Three

question 89

Essay

Plate 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 percent of plant capacity.The flatware industry was growing, so increased sales were not out of the question.I.R.Dumm 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 break-even point during his very first year.Required:
What do you think Mr.Dumm had in mind for increasing the company's operating income?

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Definitions:

Gender Stereotypes

Preconceived and oversimplified beliefs about the characteristics, attributes, and behaviors of males or females, often resulting in discrimination or bias.

Spatial-Temporal Reasoning

The cognitive process involved in manipulating and reasoning about spatial and temporal information.

Temple Grandin

An American professor of animal science and autism spokesperson known for her work in animal behavior and autism advocacy.

Humane Means

Methods or approaches that are considered to be kind, compassionate, and respectful towards the welfare of humans or animals.