Mets Inc. measures its managers against the return on investment (ROI). Maria Rivera and Julia Brown,...

 

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Mets Inc. measures its managers against the return on investment (ROI). Maria Rivera and Julia Brown, responsible for the electronics and household goods departments, have recently suffered a drop in profits in their departments. During lunch, they discuss the problem and how they might improve their performance. Most discussions are centered on how to increase sales. Toward the end of the lunch period, Julia noted that there were two items to consider and that they only looked at one. It wonders whether there is a way to reduce investment by lowering the denominator of the ROI fraction, to improve the result. Upon her return to work, Maria continues to reflect on Julia's comments. She decided to go the extra mile, and by the end of the quarter, they sold a lot of old equipment and replaced it with equipment obtained through a short-term lease. As measured by the ROI, its performance has improved dramatically, though sales continue to be disappointing. Required: 1. Identify and explain the players that are involved in this situation. 2. Is Maria's work ethically sound? Briefly explain. Mets Inc. measures its managers against the return on investment (ROI). Maria Rivera and Julia Brown, responsible for the electronics and household goods departments, have recently suffered a drop in profits in their departments. During lunch, they discuss the problem and how they might improve their performance. Most discussions are centered on how to increase sales. Toward the end of the lunch period, Julia noted that there were two items to consider and that they only looked at one. It wonders whether there is a way to reduce investment by lowering the denominator of the ROI fraction, to improve the result. Upon her return to work, Maria continues to reflect on Julia's comments. She decided to go the extra mile, and by the end of the quarter, they sold a lot of old equipment and replaced it with equipment obtained through a short-term lease. As measured by the ROI, its performance has improved dramatically, though sales continue to be disappointing. Required: 1. Identify and explain the players that are involved in this situation. 2. Is Maria's work ethically sound? Briefly explain.

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Players involved in the situation Mets Inc is a company that measures its managers performance based ... View the full answer