You are the manager of a fitness equipment manufacturing plant called Muscles Galore located in Gary, Indiana. The plant has been in operation for seven years. Over the years your employees have been very productive, and sales have been high. Therefore, Muscles Galore has been able to give generous holiday bonuses (usually more than $1,000) to all of its employees for the last five years.
This year, however, because of a slow economy, you will not be able to offer the holiday bonus. Although the workers have been very productive, fitness equipment sales are down about 20 percent from last year. Your projections indicate that the economy is recovering, and sales should be up next year. If the projections are accurate, you should be able to offer a bonus next year.
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