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Starting Date Wednesday, April 25, 2012
Closing Date Friday, April 27, 2012

Discussion Question:



Ballpoints Manufacturing Company (BMC) located in an Asian country, is a market leader in manufacturing and selling of executive class ballpoints. The company produces only one brand – Executive Qalam bearing the brand name of Extv. These high class ballpoints are used by senior corporate executives only. Major sales of the company go across the Globe. A thin amount of quantity is sold in the country only to the big corporations on the orders received from them.


In order to serve the niche, BMC enjoys outclass research facilities at its headquarter. To stimulate the workers, the company offers many incentive plans. Due to these lucrative incentive plans, the workers prefer to work hard and stay happily in the company even during calendar holidays. One of such plans has recently been developed by the core management team working at the company’s factory.


During the month of February, BMC has received a special export order from Corporate Executives International (CEI) of a European country of 150 Qalams to be delivered in the month of March. These Qalams are to be used by the corporate executives to be gathered at the coming Corporate Executive Conference on “Corporate Financial Leadership” held by CEI.


Mr. Management Accountant – BMC’s management accountant with consultation of the company’s Core Management Team has estimated a special wage rate of Rs. 300 per hour per worker for special group of workers to be worked on this order. The workers will remain for the normal working hours - 8 hours a day for the complete 30 days period.


The company’s Core Management Team is planning to introduce an Incentive Bonus Plan. Under which, the company expects its workers to complete their daily work 2 hours earlier than the normal 8 hours job. As per the plan, each of the workers working on this special order, in addition to the regular earnings, will be given the bonus as follows:
 ·      40% of 20% of the total time saved;

  • 25% of the next 30% of the total time saved; &
  • 15% of the remaining time saved.



By considering the above information you are required to answer the following:


  • Determine effective hourly earnings of each worker under the new incentive plan; &
  • Does this incentive plan suits the company? Support you answer with logical reason not exceeding two lines.


Important Instructions:


1.   Your discussion must be based on logical facts.

2.   The GDB will remain open for 3 working days/ 72 hours.

3.   Do not copy or exchange your answer with other students.  Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.

4.   Obnoxious or ignoble answer should be strictly avoided.

5.   Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over.

Views: 2246

Replies to This Discussion

Please Discuss here about this GDB.Thanks

Kindly give me idea solution of mgt 402 gdb kindly help me

Nom!!! always try to use the proper title.thanks 

tariq sb plz intervene

 pleas share the solution soon just give an idea how effective hours can calculateed

plz share solution today is the last day.

need solution plz help...

ker doo sahre.......

koi bataye method koun sa apply krain gy

koi tu idea share kur dy aj last date hai :( tariq bro wr r u :(

Bonus= Time taken / Time allowed x time saved x rate

but this will gives money figure 

Earning = hours worked x rate per hour + {Time saved / Time allowed x Hours worked x Rate per hour} this will give difference between workers work hours

put figure in it and then less if workers works 240 hours and if workers complete work 180 hours per month save

60 hours will also give safe in money.

i did

nt understand plzz in detail share it


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