Answer:
Theory X management style
Explanation:
Theory X management revolves around the assumptions about the typical laborer. This management theory posits that the average employee is unmotivated, irresponsible, and driven solely for specific rewards. Overall, managers adopting the Theory X approach believe their employees are less intelligent, inferior, and work primarily for secure paychecks.
In this management approach, supervisors maintain tight control over their workers; therefore, this style is appropriate when a company is experiencing significant challenges, where additional issues may result in catastrophic failure.
Here are the steps outlined below: Explanation: Two possible sites are being considered: Bonham: Fixed costs total $820,000 with variable costs at $15,000 per unit. McKinney: Fixed costs are $920,000 and variable costs are $13,900 per unit. Setting the equations: Bonham = 820,000 + 15,000x; McKinney = 920,000 + 13,900x. Solving these gives us
820,000 + 15,000x = 920,000 + 13,900x. This results in
1,100x = 100,000, thus x = 91 units. For the break-even analysis: 1) Break-even point = fixed costs / contribution margin for Bonham: 820,000 / (28,000 - 15,000) = 63 units. Similarly, for McKinney, the break-even is 920,000 / (28,000 - 13,900) = 65 units.
Instructions are provided below. It is necessary to provide the following details: The machine cost $120,000, and it has an estimated lifespan of four years or 920,000 cuttings, after which it could be sold for $5,000. Each depreciation method employs a different formula. For straight-line depreciation, the annual expense remains constant, while in double-declining balance, the annual depreciation expense reduces over time. Conversely, the units of production method varies the expense based on usage. A) Straight-line: Annual depreciation = (original cost - salvage value) / estimated lifespan (in years) = (120,000 - 5,000)/4 = $28,750 yearly. B) Double declining balance: Annual depreciation = 2 * [(book value) / estimated lifespan (years)]: Year 1 = 2*(115,000/4) = 57,500; Year 2 = 2*[(115,000 - 57,500)/4] = 28,750; Year 3 = 2*[(57,500 - 28,750)/4] = 14,375; Year 4 = 2*[(28,750 - 14,375)/4] = 7,187.5. C) Units of production: Annual depreciation = [(original cost - salvage value)/ total production capacity in units] * units produced: Year 1 = [(115,000)/920,000]*200,000 = $25,000; Year 2 = (0.125)*350,000 = 43,750; Year 3 = 0.125*260,000 = $32,500; Year 4 = 0.125*110,000 = $13,750.
