J21 X fx A B C D E F G H K L ABC Ltd. is a small manufacturer. It produces and sells at its capacity production level of 1000 units The following table gives cost of quality , selling price and a quality rating Total Expected Price received Cost of quality Quality per unit 100000 91.00 750.00 125000 93.00 775.00 200000 95.00 810.00 275000 96.00 825.00 12 350000 97.00 835.00 13 14 The company has fixed costs of $125,000 and variable costs of production of $450/unit 15 + 16 The manager currently recieves a bonus based on 10% of profits in excess of $25,000 17 and $500 for each quality rating above 90 18 19 His total bonus is penalized by 1% of the cost of quality 20 He cannot receive a negative bonus 21 He can receive a quality bonus if there are no profits 22 23 Calculate expected bonus and income for the organization 24 25 Explain the agency conflict and suggest a solution 26 27 28 29 30 21 |notes Assign Sheet3 Type here to search e m X w