Part I: Effective cost per hour 1 shift (8 hours) per day 5 holidays 7 days vacation Fringe: 38% of base wage Base hourly wage: $18.40 per hour 30 minute lunch (paid) plus two 15 minute breaks (paid) per day 1. What is the effective cost per hour per employee? Part II: Reduction in labor cost Using the calculations from above Assume 305,025 hours of work needed every year Productivity increases from 75% to 85% Round number of workers to whole numbers (below .5, round down; .5 and above, round up) 2. What is the total dollar change in labor expense from this increase in productivity?