Assume that you are the vice president of movie production for a major Hollywood studio. You need to compose a memo to your film

Answer and Explanation:

a. The calculation of the net operating income is detailed below:

Sales                          $800,000

Less: Variable cost  -$381,000

Contribution margin $419,000

Less:  Fixed manufacturing expenses - $263,000

Less: Fixed selling and administrative expenses - $211,000

Net operating income or (Loss) -$55,000

b. The analysis of the financial impact of discontinuing product D14E is as follows:

Sales                          $800,000

Less: Variable cost  -$381,000

Contribution margin $419,000

Less:  Fixed manufacturing expenses - $202,500

Less: Fixed selling and administrative expenses - $117,500

Financial disadvantage -$99,000

Since there is a financial disadvantage, the product should not be discontinued

We simply utilized the aforementioned equation

Part 1). The behavior I consider most relevant involves amplifying, predicting, and motivating within the office, specifically fostering motivation among team members and staff. Effective management of personnel is crucial for organizational behavior, necessitating the hiring of skilled individuals while ensuring their motivation. While motivation can vary (internal versus external), how it is managed directly influences staff efficiency and creativity. To achieve productivity and effectiveness at the organizational level, efficiently managing employee motivation is vital. Multiple frameworks, like Maslow’s hierarchy and Herzberg’s theory, can aid in this assessment. Part 2). A vital step to reduce biases and preconceptions is to recognize them and actively work against them. Staff should regularly undergo diversity training. Additionally, all stages of potential judgments, such as hiring, promotions, and assignments, should follow strictly objective criteria. This approach should assist in decreasing, if not entirely removing, biases in day-to-day team interactions.

Complete Question:

James Stilton serves as the CEO of RightLiving, Inc., a corporation that purchases life insurance policies at a reduced price from terminally ill individuals and sells them to investors. RightLiving compensates terminally ill patients with a percentage of the future death benefits (typically 65%) and subsequently sells the policies to investors for 85% of the future benefit amount. The patients receive funds to assist with their medical and other expenses, while the investors are assured a positive return on their investments. The difference between the purchase and retail prices represents RightLiving's profit.

Stilton is aware that some sick patients might acquire insurance policies through deceit (by concealing their illness on the application). If an insurance company uncovers such fraud, it will annul the policy and withhold payment. While Stilton is confident that most of the policies he has acquired are legitimate, he recognizes that a few may not be.

Requirement:

What additional ethical dilemmas might Stilton encounter?

Answer with Explanation:

Stilton's ethical challenges include:

• Should he disclose potential fraud to investors prior to executing sales?
• What policies should be established to ensure that legitimate individuals can easily sell their policies, and how would lack of such policies be unfair for RightLiving, Inc.?
• Stilton also faces ethical issues because the business model benefits from the early deaths of clients, which raises moral questions.