The entry asks you to consider why this is an ethical dilemma. Instead of doing that for this Discussion board, explain instead what you think you would do if you were the CEO of this company. If you don’t tell employees the company may need to downsize—and then you do lay off a large enough number of employees, it may become known (in the media, for example) that your company was aware of the problem three months ahead of time and did little or nothing to protect local residents (and now your former employees). Damage from a situation such as that could be not only economically costly, but could affect the company’s reputation. On the other hand, if you do tell employees there is a threat of layoffs, you may lose some of your best workers who jump ship just in case. You are the CEO—and you have this decision to make today. Post a comment on this board that explains what you would actually decide to do, and why.

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?