16 hours * 7 days * 20 employees = 2,240 worker hours - 1,080 full-time worker hours = 1,160 hours for seasonal employees / 26 employees = 45 hours/week 1,080 * $13 = $14,040 labor cost/week on full-time employees 26 seasonal employees * 40 hours * $8/hour = $8,320 26 seasonal employees * 5 hours * $12/hour = $1,560 Total labor cost during peak: $23,920 labor cost during peak $27,976 $23,920 = $4,056 saved per week $4,056 * 3 weeks in peak = $12,168 saved during peak Only about 9% ROI during the peak, but this does not count time and labor saved during non- peak. Our calculations show that the plant would only need to be open, on average, 4 hours per day during non-peak, which eliminates the need for seasonal employees. So, a further recommendation that we make is that the plant shortens the period of time that the seasonal workers work for )if this does not violate union rules). Otherwise, we would recommend buying fewer bins. Less money would be saved, but employees would have more job security.