Question

Gary and Mary are production managers at GE. Production managers are rewarded with a bonus if the whole department exceeds their target profits for the year. Gary is asking Mary to change her estimate for the percentage of completion for the ending work in process. 1) Does Gary want to increase or decrease the original estimates

Answer 1

Answer:

Gary wants to increase the original estimates.

Explanation:

Both Gary and Mary will only earn their bonus if the plant's productivity increases, and that is achieved by producing more finished units in the same amount of time. That is why Gary wants to increase the number of finished units so that they can both cash their bonuses.