Evaluate the performance of three managers who run the businesses and suggest how to distribute compensations among
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Evaluate the performance of three managers who run the businesses and suggest how to distribute compensations among the three managers. Please discuss the controllability, short-term vs. long-term measures of performance, division vs. company-wide results, evaluation of strategic decisions. Please also discuss the distribution business in France.
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Exhibit 5 2009 Ice-cream Transfers between France and Spain Ice-cream Cost of ingredients Cost per litre Volume transferred (in '000 litres) Actual Costs (in Euros) Dairy Ingredients 2.76 1.98 Other Ingredients 1.56 0.69 Labor 0.09 0.09 Allocated Fixed Costs (in Euros) Other costs 0.46 Depreciation 0.09 S&A expenses 0.04 0.17 5% profit margin Total transfer price 3.53 Total (in '000 Euros) 603 1,194 416 57 279 56 23 101 2,126 Exhibit 5 2009 Ice-cream Transfers between France and Spain Ice-cream Cost of ingredients Cost per litre Volume transferred (in '000 litres) Actual Costs (in Euros) Dairy Ingredients 2.76 1.98 Other Ingredients 1.56 0.69 Labor 0.09 0.09 Allocated Fixed Costs (in Euros) Other costs 0.46 Depreciation 0.09 S&A expenses 0.04 0.17 5% profit margin Total transfer price 3.53 Total (in '000 Euros) 603 1,194 416 57 279 56 23 101 2,126
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1 The three managers who run the businesses are a The manager who is responsible for the dairy ingre... View the full answer
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