A Company Expects Its Three Departments to Yield the Following

question 51

Essay

A company expects its three departments to yield the following income for next year:
$\begin{array}{lrrr} & \text { Dept. O } & \text { Dept. K } & \text { Dept. W } \\\text { Sales }& \$ 92,000 & \$ 15,000 & \$ 87,000 \\\text { Expenses } \\\text { Avoidable } & 73,000 & 1,000 & 36,000 \\\text { Unavoidable } & 2,000 & 8,000 & 37,000 \\\hline \text { Total expenses } & 75,000 & 9,000 & 73,000 \\\hline \text { Net income(loss) } & \underline {\$ 17,000} & \underline {\$ 6,000} & \underline {\$ 14,000}\end{array}$ Required: Compute the following independent calculations:
a.The effect on total company income if Dept.O is eliminated.
b.The effect on total company income if Dept.K is eliminated.
c.The effect on total company income if Dept.W is eliminated.

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Definitions:

Negative Consequences

Results of a behavior that a person finds unattractive or aversive.

360-degree Feedbacks

A performance appraisal method that collects feedback from all directions: supervisors, peers, subordinates, and sometimes external sources like customers.

Reinforcements

In behavioral psychology, stimuli which, when presented after a behavior, increase the likelihood of that behavior being repeated.

Deficiencies

The absence or lack of necessary qualities, skills, or resources.