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1. If a company adds 60 new workstations at a cost of $100,000 each and also spends $20 million for addition space in its camera/drone assembly facilities to accommodate more workstations, then its annual depreciation costs will rise by A. $26,000,000 B. $1,300,000 C. $1,040,000 D. $980,000 E. $1,750,000 2. As explained in the Help document associated with the Workforce Compensation & Training decision entry pagen, if (1) a company pays a drone PAT member an annual base wage of $24,000, an $800 year-end bonus for perfect attendance, and provides a company-paid annual fringe benefits package worth $3,200, (2) a PAT is paid a $4 assembly quality incentive per UAV drone assembled that is equally divided among 4 PAT members, and (3) a 4- person drone PAT assembles 1500 drones per year, then A. the annual total compensation cost of a fully-staffed PAT would be $136,000 and the total compensation cost per drone assembled would be $90.67. B. the annual total compensation cost of a fully-staffed drone PAT would be $118,000 and the total compensation cost per drone assembled would be $78.67. C. the annual total compensation cost of a fully-staffed PAT would be $96,000 and the total compensation cost per drone assembled would be $64.00. D. the annual total compensation cost of a fully-staffed PAT would be $112,000 and the total compensation cost per drone assembled would be $74.67. E. both the annual total compensation cost of a fully-staffed PAT and the total compensation cost per drone assembled would be impossible to determine from the information provided. 3. If a company earns net income of $70 million in Year 8, has 20 million shares of common stock outstanding, pays a dividend of $2.00 per share, and has an annual interest cost of $15 million, then A. the company's EPS for Year 8 would be $2.00 and its retained earnings for Year 8 would be $30 million (net income of $70 million less dividend payments of $40 million); the $30 million addition to retained earnings would cause shareholders' equity investment to decrease by $30 million in Year 8. B. the company's EPS for Year 8 would be $3.50 and its retained earnings for Year 8 would be $55 million (net income of $70 million less interest payments of $15 million); the $55 million addition to retained earnings would cause shareholders' equity investment to increase by $55 million in Year 8. C. the company's EPS for Year 8 would be $3.50 and its retained earnings for Year 8 would be $30 million (net income of $ 70 million less dividend payments of $40 million); the $30 million addition to retained earnings would cause shareholders' equity investment to increase by $30 million in Year 8. D. the company's EPS for Year 8 would be $2.75 ($70 million net profit minus $15 million interest cost = $55 million = 20 million shares). E. the company's retained earnings in Year 8 would be $15 million ($70 million net profit minus $15 million interest minus $40 million dividend). Return to instructions

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