Ming is an owner of a new business; he makes toys overseas and ship them to...

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Ming is an owner of a new business; he makes toys overseas and ship them to North America to sell. He is an artist and a designer in nature, so his choice of toys is always very popular. He is now a self generated multi-millionaire. During a recent family gathering, Ming gifted a toy to his niece which was the sample of a new shipment he ordered. He saw that right after his niece put the new toy on her face, it turned red and started to have rashes. The full shipment is already at the border and if Ming refuse to accept it, he can only chase back 50% of his initial investment. He knows that his niece has a very sensitive skin, so he is not sure if the toy would cause the same issue to other kids. Ming wants to know if there are specific ethical concepts relating to the community, local business, shareholders, and executive management. How do those concepts apply to his situation? Last year, Ming sold over 500,000 toys, large and small. The average variable cost for those toys is about 45% of its sales price. On average, the toys are sold $9 each. The toy factory's fixed costs will be $65,000 amet. Next year, the sales volume will increase by 15%, but so will fixed costs. Also, since the current plant is near its capacity, Ming is thinking to rent a second factory for $52,000.a year Ming wants some advice on what cost-volume-profit (CVP) analysis is and how it can help his business. Specifically, Ming is seeking advice on discussion of the break-even point, calculate margin of safety, and comparing performance between years. In addition to the issues mentioned, Ming is open to any business advice. Write a memo or bullet points to lay out your ideas covering all relevant issues in detail. Ming is an owner of a new business; he makes toys overseas and ship them to North America to sell. He is an artist and a designer in nature, so his choice of toys is always very popular. He is now a self generated multi-millionaire. During a recent family gathering, Ming gifted a toy to his niece which was the sample of a new shipment he ordered. He saw that right after his niece put the new toy on her face, it turned red and started to have rashes. The full shipment is already at the border and if Ming refuse to accept it, he can only chase back 50% of his initial investment. He knows that his niece has a very sensitive skin, so he is not sure if the toy would cause the same issue to other kids. Ming wants to know if there are specific ethical concepts relating to the community, local business, shareholders, and executive management. How do those concepts apply to his situation? Last year, Ming sold over 500,000 toys, large and small. The average variable cost for those toys is about 45% of its sales price. On average, the toys are sold $9 each. The toy factory's fixed costs will be $65,000 amet. Next year, the sales volume will increase by 15%, but so will fixed costs. Also, since the current plant is near its capacity, Ming is thinking to rent a second factory for $52,000.a year Ming wants some advice on what cost-volume-profit (CVP) analysis is and how it can help his business. Specifically, Ming is seeking advice on discussion of the break-even point, calculate margin of safety, and comparing performance between years. In addition to the issues mentioned, Ming is open to any business advice. Write a memo or bullet points to lay out your ideas covering all relevant issues in detail.

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Memo to Ming Business Advice and Ethical Considerations Subject Business Advice and Ethical Considerations for Your Toy Business Dear Ming I hope this memo finds you well I understand that you are fac... View the full answer