Management Is Considering Adopting a Bonus System to Increase Production

question 131

Multiple Choice

Management is considering adopting a bonus system to increase production. One suggestion is to pay a bonus on the highest 5 percent of production based on past experience. Past records indicate that, on the average, 4,000 units of a small assembly are produced during a week. The distribution of the weekly production is approximately normally distributed with a standard deviation of 60 units. If the bonus is paid on the upper 5 percent of production, the bonus will be paid on how many units or more?

• A) 6255
• B) 5120
• C) 3196
• D) 4099

---

Definitions:

Taxable Estate

The total value of an individual's estate that is subject to federal estate taxation upon their death.

Taxable Income

The portion of income, subject to taxes, calculated by deducting allowable deductions from gross income.

Charge and Discharge Statement

A financial report detailing the charges (debts or obligations) and discharges (payments or settlements) within a specific period.

Remainderman

An individual who inherits or is entitled to inherit property upon the expiration of a life estate.