Ethics in Business

Deadline is approaching?

Wait no more. Let us write you an essay from scratch

Receive Paper In 3 Hours

In business, we should consider ethics. If certain values ​​and rules are broken, we will not be able to proceed smoothly in business operations. In this case, it can be clearly seen that the management’s behavior is to manipulate profits by adding 20,000 units. The following is the calculation result of the number we will obtain with or without other units.
First calculation
Sales are $2100,000 from 35,000 units of sales at $60 per unit
The cost of goods sold for 35,000 units is $10,500,000 for $30
Gross profit $ 1,050,000
Jim earning in this case is twenty percent of the profit profit = $210,000

Second computation

Sales $210,000

Cost of the goods sold,

Units added are 20,000units at price of $40= $800,000

The remaining units 15,000 at a price of $30 = $450,000

Total cost (1250000)

profit $850,000

Jim earning here will be less after we take 20% of the gross profit = $170,000

From the calculation above the additional of the 20, 000 units will have a negative effect on the performance of the organization. The payment to different entities in the organization will reduce. First, the profit to the shareholders will also reduce payment to the Jim and the income tax will reduce as well. From the figure above the payment to Jim Lester reduced by $40,000 and the gross profit decreased by $200,000 which shows that the net before tax income reduced by $160,000.

In the organization at the time, it will be hard to make the judgments which will affect the profitability of the organization negatively. In this case, the organizations will meet at the crossroad whether to accept the purchase of the inventory or not. For sure the purchase will cause a reduction in the earning of different stakeholders in the organization (Petryni, Matt). Given that all stakeholders in this organization aim to profit I bet it will not be right to make this purchase at this time of the year given the available stock can sustain the organization for the next six months.

Work cited

Petryni, Matt. “Accounting Ethics And Integrity Standards.” Smallbusiness.Chron.Com, 2015,

This sample could have been used by your fellow student... Get your own unique essay on any topic and submit it by the deadline.

Let a professional writer get your back and save some time!

Hire Writer

Find Out the Cost of Your Paper

Get Price

Can’t find the essay you need? Our professional writers are ready to complete a unique paper for you. Just fill in the form and submit your order.

Proceed to the form No, thank you
Can’t find the essay you need?