1. Next year Baldwin plans to include an additional performance bonus of 0.5% 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? Current pay is 26.81 p/hr

$31.04

$28.15

$28.29

$29.70

2. A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The primary location being considered will have fixed costs of $12,450 per month and variable costs of $1.16 per unit produced. Each item is sold to retailers at a price that averages $1.28

a) The volume per month is required in order to break even =  (in whole number)

b) The profit or loss would be realized on a monthly volume of 61,000 units =  

c) The volume is needed to obtain a profit of $16,000 per month =  (in whole number)

d) The volume is needed to provide revenue of $23,000 per month =  (in whole number)