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Table 12.1
Lee is the vice-president of a large department. He has a number of projects to assign to his managers, who are already overworked and understaffed. While they are capable and willing, one more project is going to push some of them to the breaking point. Before assigning any projects, he calls a meeting of all his managers to discuss the current situation and the new projects that have been given to him. He asks his managers for their help in getting through this workload crisis and points out that they were able to do it before. A couple of managers complain to Lee, saying it isn't fair to expect so much, and they can't keep going at this pace. In response, Lee points out that the company has always been this way. He told them about the workload when he interviewed them, and they have been through this kind of push before. Lee decides to give the Techno 2120 project to Joan. As he tells her about it, he explains that this project will contribute directly to the company's bottom line, and that it is something similar to her last project, making her the best manager for the job. With Hoa, Lee begins by making some small talk and asking him how his golf game is going. Lee expresses admiration for Hoa's skill as a golfer and his ability to balance his work and personal life so well. Then Lee explains how Hoa is the only one who can handle the project he is getting. As his best project manager because of his great past results, Hoa is the one for the job.
-Refer to Table 12.1. In reasoning with the complaining managers, Lee used:
Net Operating Income
The total profit of a company after operating expenses have been subtracted from total revenue, but before deducting taxes and interest.
Traceable Fixed Expenses
Fixed costs that can be directly linked to a specific product, department, or segment of a business.
Variable Expenses
Costs that change in proportion to the activities or volume of a business.
Net Operating Income
A measure of a company's profitability from its regular business operations, excluding expenses and revenues that are unrelated to the primary business activities.
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