Scanlon plans represent a group-level incentive plan that provides payouts based on whether the implementation of proposals
Question:
Scanlon plans represent a group-level incentive plan that provides payouts based on whether the implementation of proposals for labor costs savings are successful. Among the important determining factors is the calculation of Scanlon ratios (labor costs / sales value of production). Scanlon ratios are compared to a standard. Payouts are made whenever the Scanlon ratio is less than the standard.
The Scanlon ratio for
2014
is
0.70,
and it is the standard for comparison. Assume that in
2015,
total labor costs amounted to
$36,000,000
and sales value of production (SVOP) amounted to
$70,000,000.
Also, assume that total labor costs will increase by
8.0
percent annually and SVOP will increase by
15.0
percent annually starting in
2016.
Part 2
a) The Scanlon ratio for
2015
will be
0.51
Round your response to the nearest hundredths place.
Part 3
b) The Scanlon ratio for
2016
will be
0.48
Round your response to the nearest hundredths place.
c) The Scanlon ratio for
2017
will be
0.45
Round your response to the nearest hundredths place.
d) The Scanlon ratio for
2018
will be
0.43
Round your response to the nearest hundredths place.
Please help with the last part
Part 4
a) The total dollars available for bonus payout in
2015
will be
$enter your response here.
b) The total dollars available for bonus payout in
2016
will be
$enter your response here.
c) The total dollars available for bonus payout in
2017
will be
$enter your response here.
d) The total dollars available for bonus payout in
2018
will be
$enter your response here.
Round your response to the nearest hundredths place.
Basic Business Statistics Concepts And Applications
ISBN: 9780132168380
12th Edition
Authors: Mark L. Berenson, David M. Levine, Timothy C. Krehbiel