I don't get it.
I've got a nifty new product proposal that can't help but make money,
and top management turns thumbs down.
No matter how we price this new item,
we expect to make s390,000 on it pretax.
That would contribute over 15 cents per share to our earnings after taxes,
which is more than the 10 cent earnings-per-share increase in 2015 that the president made such a big thing about in the shareholders' annual report.
It just doesn't make sense for the president to be touting e.p.s. while his subordinates are rejecting profitable project like this one.
The frustrated speaker was sarah McNeil,
product development manager of the Consumer Products Division of nager Industries, Inc.
Enager was a relatively young company,
which had grown rapidly to its 2015 sales level of over $222 million. (See Exhibits 1 and 2 for financial data for 2014 and 2015)