Gain Sharing Plan (Rucker Plan): Assume accounting records show that the company expended $.50 worth of electricity, materials, and supplies, and so on, to produce $1.50 worth of product. The value added is __________ for each $1.50 of sales value. Assume also that 45% of the value added was attributable to labor. Calculate the Productivity Ratio. If the wage bill equals $100,000, calculate the expected production value. If actual production value equals $750,000, what will be the savings? Since the labor contribution to value added is 45%, the bonus to the workforce will be _______. What percentage of the bonus should be distributed and what percentage of bonus should be withheld and placed in an emergency fund to reimburse the company for any future months when a "negative bonus" is earned (i.e., when the actual wage bill is greater than allowable wage bill)

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To solve this problem we can follow these steps 1 Calculate the value added for each 150 of sales va... View the full answer