no further downsizing will occur from automating. Baldwin plans to spend an additional $500 beyond
the extra amount above the $1000 recruiting base it spent this year. The goal of this additional
investment is to improve the quality of applicants. What would the total recruiting cost be for Baldwin
next year?
Select: 1
$168,535
$202,242
$185,389
$219,096
Answer:
Additional amount = 1000 + 500*4 = 3000
Total amount = 3000*80 =240,000
Increase in cost = 240,000*0.0629 = 15,096
Total recruiting cost next year = 204,000 + 15,096 = 219,096
Next year Baldwin plans to include an additional performance bonus of 0.25% in its compensation
plan. This incentive will be provided in addition to the annual raise, if productivity goals are reached.
Assuming the goals are reached, how much will Baldwin pay its employees per hour?
Select: 1
$28.22
$29.63
$31.04
$28.15
Answer:
Total raise = 5% + 0.25% = 5.25%
Present wages = $28.15
Baldwin will pay = $28.15 (1.0525) = $29.63
Andrews Corp. ended the year carrying $80,392,000 worth of inventory. Had they sold their entire
inventory at their current prices, how many more dollars of contribution margin would it have brought
to Andrews Corp.?
Select: 1
$128,965,000