Case is Included at the bottom

1. What will the total payroll costs be at the end of the current year ( Year 1 ) ?

 2. What will the total payroll costs be for the next year ( Year 2 ) , as per the terms negotiated in the collective agreement ?

 3. How many more teachers will the school need to hire in order to maintain the current teacher - student ratio in the next year ( Year 2 ) ?

4. Calculate the total payroll costs for Year 2 taking into consideration the negotiated pay raise as per the collective agreement and the following changes : a . Five teachers earning an average salary of $ 92,000 retire by the end of year 1 b . Eight teachers are hired at an average salary of $ 55,000 at the beginning of year 2

5. Based on your calculations , do you think the school is financially viable

 

 

Transcribed Image Text:

26%0 11:54 AM Thu Aug 10 guarantee steadily climbing costs, even in times when the school's finances do not permit increases. The following shows the current salary schedule at Two Harbours, as of January 1 of this year (Year 1): Step Group 1 Group 2 Group 3 Group 4 0 $48,040 $50,273 $54,375 $58,230 1 $50,578 $52,939 $58,029 $61,388 2 $53,519 $56,014 $61,890 $65,146 3 $56,460 $59,096 $65,742 $68,916 4 $59,809 $62,566 $69,810 $73,291 5 $63,152 $66,068 $73,868 $77,666 The compensation team at Two Harbours is aware of the following: 1. A number of teachers will receive raises during Year 1 due to their accumulating experience and higher education attainment, that is, changes in "steps" and "groups." The total raise amounts to $80,000. 2. The current collective agreement states that teachers' salaries will rise by 1% on January 1 of next year (Year 2); and 3. Student enrollment is expected to rise by 3% next year (Year 2). Page 276 Question 1. What will the total payroll costs be at the end of the current year (Year 1)? 2. What will the total payroll costs be for the next year (Year 2), as per the terms negotiated in the collective agreement? 3. How many more teachers will the school need to hire in order to maintain the current teacher-student ratio in the next year (Year 2)? 4. Calculate the total payroll costs for Year 2, taking into consideration the negotiated pay raise as per the collective agreement and the following changes: a. Five teachers earning an average salary of $92,000 retire by the end of year 1. b. Eight teachers are hired at an average salary of $55,000 at the beginning of year 2. 5. Based on your calculations, do you think the school is financially viable. 26%0 11:54 AM Thu Aug 10 guarantee steadily climbing costs, even in times when the school's finances do not permit increases. The following shows the current salary schedule at Two Harbours, as of January 1 of this year (Year 1): Step Group 1 Group 2 Group 3 Group 4 0 $48,040 $50,273 $54,375 $58,230 1 $50,578 $52,939 $58,029 $61,388 2 $53,519 $56,014 $61,890 $65,146 3 $56,460 $59,096 $65,742 $68,916 4 $59,809 $62,566 $69,810 $73,291 5 $63,152 $66,068 $73,868 $77,666 The compensation team at Two Harbours is aware of the following: 1. A number of teachers will receive raises during Year 1 due to their accumulating experience and higher education attainment, that is, changes in "steps" and "groups." The total raise amounts to $80,000. 2. The current collective agreement states that teachers' salaries will rise by 1% on January 1 of next year (Year 2); and 3. Student enrollment is expected to rise by 3% next year (Year 2). Page 276 Question 1. What will the total payroll costs be at the end of the current year (Year 1)? 2. What will the total payroll costs be for the next year (Year 2), as per the terms negotiated in the collective agreement? 3. How many more teachers will the school need to hire in order to maintain the current teacher-student ratio in the next year (Year 2)? 4. Calculate the total payroll costs for Year 2, taking into consideration the negotiated pay raise as per the collective agreement and the following changes: a. Five teachers earning an average salary of $92,000 retire by the end of year 1. b. Eight teachers are hired at an average salary of $55,000 at the beginning of year 2. 5. Based on your calculations, do you think the school is financially viable.