Which one of the following is an attractive and effective way to reduce the production, marketing, and other costs of entry-level cameras and help achieve a low-cost competitive advantage over rival companies based on lower overall costs per entry-level camera sold?
Trying several different “what-if” entries for core components to be used in entry-level cameras in order to discover the lowest cost combination for achieving the target P/Q rating
Spending less than $500,000 annually for Corporate Social Responsibility and Citizenship initiatives
Producing an entry-level camera with a P/Q rating of 1/2-star
Investing in robotic assembly equipment to reduce the number of PATs needed to assemble cameras and thus lower labor costs per camera assembled at the company’s Taiwan plant
Keeping the annual base wage per PAT member below $17,500.
The benefits of pursuing a strategy of social responsibility and corporate citizenship include
the boost such a strategy gives to increasing the company’s global sales volume and global market share of entry-level and multi-featured cameras.
the positive impact that such a strategy can have on the company’s image rating if the company spends a meaningful amount on socially responsible activities over a multi-year period.
the enhanced profitability that results when a company opts to spend money on socially responsible activities.
the boost such a strategy gives to the company’s stock price.
the positive impact that such a strategy has on the company’s P/Q ratings for entry-level and multi-featured cameras.According to the depreciation rates used by the company and described in the Production Cost Report, if a company adds 50 new workstations at a cost of $75,000 each and also spends $10 million for an addition to its assembly plant to accommodate the new workstations, then its annual depreciation costs will rise by