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Which of the following statements about your company's assembly operations for cameras and drones is TRUE?

All of the company's capital expenditures for fixed assets $($facilities$,$ workstations, robotics upgrades, office equipment, and furnishings$)$ at the Taiwan plant site are depreciated over $25$ years at the rate of $4\%$ annually.

It is standard practice for your company to pay for the capital costs of new workstations, facilities expansions, and robotics upgrades by reducing dividend payments to shareholders in the year the capital costs are incurred.

If the company decides to shift from manual assembly to robotics$-$assisted assembly for cameras and$/$or drones, ALL existing workstations in a camera or drone assembly facility must be upgraded to include the use of a robot and all workstations added thereafter in that facility must be robot$-$equipped.

The maximum number of cameras$/$drones that can be assembled at overtime is $20\%$ of annual PAT productivity $($the number of units a camera$/$drone PAT assembles each year$)--$however, if robotics upgrades are undertaken, the maximum rises to $30\%$ of annual PAT productivity.

Shifting to robot$-$assisted assembly results in added annual maintenance costs of $$6,000$ per workstation because robots require monthly maintenance and also, from time to time, break down and have to be repaired.

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Copyright $($c$)2024$ by Glo$-$Bus Software, Inc. ver: $1908438$

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