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Wright State University Operations And Supply Chain Management Assignment Help - Lesley Chomski


Question - Lesley Chomski is the supervisor of the New Product Division of MCO Corporation. Her annual bonus
is based on the success of new products and is computed on the number of sales that exceed each
new product’s projected breakeven point. In reviewing the computations supporting her most recent
bonus, Chomski found that although an order for 7,500 units of a new product called R56 had been
refused by a customer and returned to the company, the order had been included in the bonus
calculations. She later discovered that the company’s accountant had labeled the return an overhead
expense and had charged the entire cost of the returned order to the plant-wide Overhead account.
The result was that product R56 appeared to exceed ...Read More

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