- Complete individually as an essay or narrative, not as answers to questions or as a problem. Calculations may be necessary to illustrate the issue or to support conclusions
- Include an executive summary, overview of situation, issues addressed, suggested resolution, and conclusion. The overview need not contain a complete restatement of the case, just enough background for a reader not familiar with the case to follow the narrative
- Complete in good grammatical form with appropriate business tone and logical narrative flow. Grading will include grammar, sentence structure, paragraph form, and structure of the narrative
- Paper should be one or two single-spaced pages using 11 pt. font and excluding any titles or supplements
- If any sources other than the text book are used, they should be cited appropriately
Columbus Park –Waste Treatment Facility
As a manager of the waste treatment facility for the city of Columbus Park, Illinois, Ann Paxton is in the process of preparing an annual expense budget. While eating lunch at her desk, she thought about the coming year. “Next year, my department will probably be asked to process some 9,000,000 gallons of waste. Our variable costs are about $0.20 per gallon, and our fixed costs are about $2,400,000. So the total cost should be somewhere around $4,200,000. I better submit a budget of around $4,900,000. The city’s tax revenues are down and the city controller will probably reduce whatever budget I submit by 10%. And what if I end up incurring higher expenses than anticipated? A new labor contract, for instance, could increase costs by more than $300,000. Or waste could be 500,000 gallons higher than estimated. The last thing I want is to incur more costs than budgeted. I’ve got to stay within budget to have any chance for a promotion out of this stinking department!”
Required:
Discuss whether it is ethical for Ann to submit a budget for an amount higher than the cost expected to be incurred.
