Gary was a politically savvy employee who had worked for his company for several years. after many promotions, he emerged as the new president of the company. grace, a colleague of gary’s who had reported to him when he was a first-line supervisor, understood how the human side of the organization worked and made certain that she maintained a direct line of communication with gary at all times. on the company’s organization chart, grace maintained a lower-level position; however, due to her open line of communication with president gary, she seemed to successfully push her agenda. the human side of the organization is synonymous with the

T-comm makes a variety of products. it is organized in two divisions, north and south. the managers for each division are paid, in part, based on the financial performance of their divisions. the south division normally sells to outside customers but, on occasion, also sells to the north division. when it does, corporate policy states that the price must be cost plus 20 percent to ensure a "fair" return to the selling division. south received an order from north for 300 units. south's planned output for the year had been 1,200 units before north's order. south's capacity is 1,500 units per year. the costs for producing those 1,200 units follow