Expected Costs for Bohlander Botanicals and the Employees' Ethics

Review Cases 2.29 and 2.30 in your textbook. Respond to the questions in 2.30, supported by data that you calculate for 2.29. Discuss how a company's policy can encourage or prevent employees from engaging in unethical behavior in order to meet quotas. Reference and Cite needed. Managerial Accounting
Davis C. E., & Davis E. (2020). Managerial Accounting, Enhanced eText (4th ed.). John Wiley & Sons. ISBN-13: 9781119577669
https://www(dot)gcumedia.c

2.29 (LO 1) Calculate expected costs Bohlander Botanicals develops hybrid tea roses. A relative newcomer to the field, Bohlander is looking for innovative ways to advertise its products to poten-tial customers. Rose Mayfield, sales manager and avid online shopper, wonders about advertising the company’s roses on various gardening websites. She has contacted Kimland Media, Inc., an advertising firm specializing in Internet advertising campaigns, to explore some options. After meeting with Rose, Sami Landon, regional sales coordinator, has suggested that Bohlander use a targeted marketing strategy by placing banner ads on a few gardening websites. Bohlander would pay for the service based primarily on the number of ad impressions (the number of times the ads are shown). Using past campaigns as a guide, Sami has prepared the following quarterly estimate for Bohlander. Banner ad development (6 banners per quarter) $7,200 Banner ad placement $1.50 per thousand impressions Estimated ad impressions 1,000,000 Banner ad click-throughs $0.60 per click-through From past experience, Kimland Media estimates that 1% of all viewers will “click through” the banner ad to Bohlander’s website. Of those viewers who click through, Kimland estimates that 20% will actu-ally make a purchase.

2.30 Ethics (This is a continuation of Case 2-29) On March 15, Jeff Blake, Kimland Media’s sales director, stopped by Sami Landon’s cubicle. “Sami, I’ve been reviewing your accounts, and they aren’t generating as much revenue as we had hoped. If you want to achieve your quota for the quarter, you’re going to have to bump it up a bit.” Sami thought for a few minutes about how she might increase her revenue pool. She could sign some new customers, but she didn’t have any strong leads, and developing the ones she had would take too much time. She couldn’t create new banner ads for her current customers. Then it dawned on her: She could increase her variable revenue through increased click-through counts on her existing banner ads. Sami got on the phone and called her friends and family members. “I need a small favor. Would you go to www.tearosegarden.com and look for the Bohlander ad? Then just click through the ad as many times as you can.” Required a. Was it ethical for Sami to enlist the help of friends and family to drive up the number of clickthroughs to Bohlander’s website? Why or why not? b. Would your answer to part (a) change if Sami’s friends and family members actually made a pur-chase from Bohlander? Why or why not? c. What impact did Sami’s actions have on Bohlander Botanicals?