Compensation

QUESTION $1$

Assuming $520$ hours in the quarter, calculate the hourly wage for job levels $2-5$ and the quarterly wage for job level $1.$ For all employee levels, compute benefits, total

compensation, and hourly compensation. QUESTION $3$

Based on your calculations in the previous question and $110,000$ units of production, by how much does the across$-$the$-$board $6\%$ raise increase unit cost?

Answer

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${01}_{,}{02}_{,}03$

$05$ QUESTION $4$

In addition to the raise, assume the firm increases benefits by $3$ percentage points $($to $24\%).$ What is the cost of the benefits increase? $$0$

How much more does the benefits increase add to unit cost? $

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$01,{02}_{0304}$QUESTION $5$

Why might cutting wages to reduce unit cost not have the intended effect?

Overtime costs would offset reduced wages.

Training costs would increase.

Turnover could increase, and productivity drop.

Wages do not affect unit cost.

Show your work or leave a commentCompensation

QUESTION $2$

The firm would like to give a $6\%$ raise to all employees. Calculate the dollar amount of the raise for each level. Then, given the number of employees at each level, calculate the total cost of the raise$-$this is the amount that would be charged against the budget. Finally, calculate the total payroll amount including the raise.

$\backslash$table$[[$Job Level,Quarterly Wage,$6\%$ Raise,Number of Employees,Cost of Raise,Payroll with Raise$],[5,$$$19,100,$$$1146\mathrm{.}00,$:$,21,$$$24066\mathrm{.}00,$:$,$$$424146,$grad$],[4,$$$15,400,$$$924\mathrm{.}00,$:$,24,$$$,,$q$,],[3,$$$12,700,$$$762\mathrm{.}00,**^(),50,$$$,,$$$,],[2,$$$10,400,$$$624\mathrm{.}00,**^(),55,$$$,,$$$,],[1,($see previous question$),$$$521\mathrm{.}64,**^(),459,,,$$$,],[,,$Totals,,,!,,$$,]]$

PLEASE ANSWER: Based on your calculations in the previous question and $110,000$ units of production, by how much does the across$-$the$-$board $6\%$ raise increase unit cost?

$

Answer