You work for a company that has two manufacturing locations. Your company repairs large ships for both the government and the private sector. The government work is done on a cost-plus basis while the private sector work is on a fixed-price basis. Location 1 has overhead costs of $25,000,000 while location 2 has overhead costs of $90,000,000. Direct labor hours/costs are approximately the same at both locations. You learn that the government job (cost plus) will be assigned to location 2 while the private sector jobs (fixed price) will be assigned to location 1. 

Is this ethical? Explain.

Answer rating: 100% (QA)

Answer Whether or not this is ethical depends on the companys policies and the specifics of the indi... View the full answer