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August 15th, 2017 
admin | . If a company pays a PAT member a base wage of $24,000, a PAT incentive bonus of $1 per camera assembled, a $75 quarterly bonus for perfect attendance, and annual fringe benefits of $3,000, and if a PAT assembles 10,000 cameras per year (or 2,500 cameras per quarter), then the annual compensation cost of a fully-staffed PAT would be | |||||||||||||||||||||||
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a. |
$72,000. | ||||||||||||||||||||||
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b. |
$119,200. | ||||||||||||||||||||||
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c. |
$149,200. | ||||||||||||||||||||||
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d. |
$89,400. | ||||||||||||||||||||||
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e. |
None of the above. | ||||||||||||||||||||||
| 2. If a company spends $5 million to advertise its camera lines in North America, assembles and ships 300,000 entry-level cameras and 200,000 multi-featured cameras to its North American dealers, derives revenues of $100 million from its sales of entry-level cameras and $150 million from the sales of its multi-featured cameras in North America, then | |||||||||||||||||||||||
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a. |
50% of the $5 million in advertising expenditures in North America will be allocated to the costs of advertising for entry-level cameras and 50% will be allocated to the costs of multi-featured cameras. | ||||||||||||||||||||||
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b. |
60% of the $5 million in advertising expenditures in North America will be allocated to the costs of advertising for entry-level cameras and 40% will be allocated to the costs of multi-featured cameras. | ||||||||||||||||||||||
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c. |
the per camera advertising costs for both entry-level and multi-featured cameras in North America will be $7.50. | ||||||||||||||||||||||
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d. |
40% of the $5 million in advertising expenditures in North America will be allocated to the costs of advertising for entry-level cameras and 60% will be allocated to the costs of multi-featured cameras. | ||||||||||||||||||||||
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e. |
None of the above. | ||||||||||||||||||||||
3. Assume a company’s Income Statement for Year 7 is as follows:
Based on the above income statement data, the company’s operating profit margin is |
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a. |
23.56% | ||||||||||||||||||||||
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b. |
31.40% | ||||||||||||||||||||||
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c. |
7.07% | ||||||||||||||||||||||
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d. |
24.56% | ||||||||||||||||||||||
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e. |
None of these | ||||||||||||||||||||||
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