Is it unethical of joan to bias her estimate

Assignment Help Managerial Accounting
Reference no: EM13957223

Joan Paxton, VP of marketing for Super tone Recording Equipment, has developed a marketing plan for presentation to the company's president. The plan calls for television ads, something the company has never used. As part of her presentation, she will indicate the impact of the TV ads on company profit as follows:

2077_259-B-M-A-D-M (1052).png

While Joan is quite confident in the cost of the ads and the incremental cost of goods sold if sales are $9,000,000, she is quite uncertain about the sales increase. In fact, she believes that her estimate is on the high side. However, she also believes that if she puts in a more conservative estimate, such as $7,000,000, the president will not go along with the TV ads even though they still will generate substantial profits at $7,000,000 of incremental sales. 

Required: 

Is it unethical of Joan to bias her estimate of incremental sales on the high side, given that she believes the ultimate outcome is in the best interest of the company?  

Reference no: EM13957223

Questions Cloud

Cost reconciliation report under the fifo method : In the cost reconciliation report under the FIFO method, the costs to be accounted for equals the cost of beginning work in process inventory plus the cost of units transferred out.
How does an ethical approach encourage problem solving skill : How does an ethical approach encourage problem solving skills in the workforce? What role does HR play in fostering this type of culture?
Form of the impulse response function : In general terms what does the form of the impulse response function tell you about the system?
What is the flow rate in gallon per minutes : What is the flow rate in GPM (gallon per minute) for the water to run through each of the reversible turbine generator (6 of them} in Ludigton's hydro pumped system, assuming the average height at 300 ft and 312 MW power rating for each generator...
Is it unethical of joan to bias her estimate : Is it unethical of Joan to bias her estimate of incremental sales on the high side, given that she believes the ultimate outcome is in the best interest of the company?
What is the potential difference between points a and b : In the circuit shown, the current through the 12 V Battery is measured to be 70.6 mA in the direction shown. What is the current through the 24V source?
Discuss the applicability to it governance : Your paper must present a summary of your research, discuss the applicability to IT governance, present a discussion of five or more policy issues related to the topic.
Probability that a persontakes prescription drugs regularly. : Given that a person uses five or more prescriptions, determine the probability that the person is age 65 or older.
What roles do problem solving and decision making play : How can the HR department partner with managers in their effort to improve the decision making performance of a departments team - What roles do problem solving and decision making play in strategy formulation

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Calculate abc-based services costs for the tfc business

Calculate ABC-based services costs for the TFC business and calculate the distribution services costs for "Customer A" and "Customer B." What inference do you draw about the profitability of these two customers?

  Which one of the following period-interest combinations

A $10,000, 8%, 10-year note payable that pays interest quarterly would be discounted back to its present value by using tables that would indicate which one of the following period-interest combinations?

  Calculate the estimated cash receipts for september

Cash receipts budget. Scottsdale Co. has actual sales for July and August and forecast sales for September, October, November, and December as follows:

  Explain why setting up a budget is so important for this new

Explain why setting up a budget is so important for this new start-up division

  You must prepare a return on investment analysis

You must prepare a return on investment analysis for the regional manager of Fast & Great Burgers. This growing chain is trying to decide which outlet of two alternatives to open.

  Should bradley make the duct work or buy it prefabricated

Should Bradley make the duct work or buy it prefabricated?

  What must be the rate of return earned by the firm

If the sustainable growth rate is 5% and the plow back ratio is .4, what must be the rate of return earned by the firm on its new investments?

  What is the cost of ending work in process

What is the cost of ending Work in Process?

  Prepare the journal entry to record tamasine company

Prepare the journal entry to record Tamasine Company's issuance of 5,000 shares of $100 par value 7% cumulative preferred stock for $ 102 cash per share.

  What is the weighted average cost of capital

What is the weighted average cost of capital using retained earnings? What is the weighted average cost of capital using new common stock?

  Determine account balances of the t accounts

Determine account balances of the T accounts and accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.

  What is differential revenue from the acceptance of offer

A business received an offer from an exporter for 20,000 units of product at $15 per unit. The acceptance of the offer will not affect normal production or domestic sales prices.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd