Samson Software operates a training facility that offers classes in the use of its software products. Historically, the classes have been offered at a modest charge that covers the cost of the instructor’s salary but not overhead related to the training facility (e.g., janitorial cost, utilities, rent, and administration).
Latoya Johnsen had recently been named director of customer training, and she will be given considerable freedom in operating the training facility and in marketing classes. Top management at Samson, however, has told Latoya that they want her operation to earn a before-tax profit of at least $300,000.

Discuss the wisdom of requiring the training operation to earn a profit.

  • CreatedSeptember 23, 2013
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