Answer Sheet: Crunch the Numbers Week $2-$ Chapter $5$

AI Goods, Inc. has recently adopted a highly complex automated management system with an artificial intelligence component that requires highly skilled workers. Company growth is expected to increase through the next ten years, requiring additional distribution centers. Initially, there were enough highly qualified job candidates with the necessary experience required to perform the job without requiring company investments in training.

As growth continued, the supply of skilled job candidates relative to the company$$s needs was low. This labor market reality led the company to establish a skill$-$based pay system. The company$$s analysis of the labor market enabled them to project the mix of employees that will be available $($those who are already fully qualified, needing little training, and those who have the potential to perform well, but who do not have the required skills to perform the jobs$).$

The current market rate for highly skilled workers averages $$23\mathrm{.}00$ per hour. AI Goods pays its skilled workers $10\%$ above the market average hourly pay rate in order to entice the best qualified candidates. These new hires are productive right from the start with little company training investment.

The company offers less skilled new hires starting pay at $20\%$ below the market average because of the extensive training needed before they can perform their jobs.

The company employs $500$ workers. $40\%$ are paid above the market average and $60\%$ are paid below the market average.

Over the next year, the company plans to hire $70$ additional employees. $20\%$ of the new hires are expected to be paid above the market rate and $80$ percent are expected to be paid below the market rate.

Show your math

$5-11.$ What is the hourly pay rate for AI Goods$$:

$($a$)$ highly skilled workers and

$($b$)$ workers who are building skills through training

$5-12.$ Based on $160$ monthly work hours per worker, what is the total cost of monthly wages for all of AI Goods$$ current:

$($a$)$ highly skilled workers and

$($b$)$ workers who are building skills through training

$5-13.$ Based on $160$ monthly work hours per worker, what will the total cost of monthly wages be for all of AI Goods$$ newly hired workers $($expected to be hired over the next year$)$ who:

$($a$)$ are highly skilled and

$($b$)$ will be building skills through training?