Suppose you are the human resource manager for a cellular phone company with $600$ employees. Top management has asked you to implement three additional fringe benefits that were negotiated with employee representatives and agreed upon by a majority of the employees. These include group term life insurance, a group legal services plan, and a wellness center.

The life insurance is estimated to cost $$910$ per employee per quarter. The legal plan will cost $$364$ semiannually per employee. The company will contribute $40\%$ to the life insurance premium and $75\%$ to the cost of the legal services plan. The employees will pay the balance through payroll deductions from their biweekly paychecks. In addition, they will be charged

$1$

$4$

$\%$

of their gross earnings per paycheck for maintaining the wellness center. The company will pay the initial cost of $$900,000$ to build the center. This expense will be spread over $5$ years.

$($a$)$