Ethics Analysis: Susan Tanks and Larry Flyright Case Study The following discussion provides an analysis and evaluation of the case study involving Susan Tanks and Larry Flyright. Identification of the Dilemma The decision that must be made concerns whether to increase the profitability of the job by changing the allocation base to machine hours instead of maintenance hours. Using machine hours would increase the revenues on the job by $12.50 per unit. And this would result in an increase in profitability of the job by $125,000. But as Larry points out, they have previously researched the allocation base issue and found that maintenance hours reflect the consumption of maintenance cost much better than machine hours. Larry, therefore, has...The end:
.....e established and supported with a potentially huge customer. Not only would the company secure this current job but future work would also be more likely. So, in short, although the job does not yield the types of profits Susan and other members of management would like to see, it is a good step in the right direction for a struggling company. Conclusion In the final comment, both Susan and Larry could have made better decisions regarding the contract with the military base. They had effectively secured a good paying job but because of imprudent decisions, the company was thrust into a desperate and possibly even a company breaking situation. Certainly, Susan and Larry could have done much better than that in the performance of their jobs.