1. 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
a. $72,000.
b. $119,200.
c. $149,200.
d. $89,400.
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
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.
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.
c. the per camera advertising costs for both entry-level and multi-featured cameras in North America will be $7.50.
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.
e. None of the above.