Wages and Benefits Math Problem

Stuff Given:

278 hourly workers

Average hours worked per day, per worker = 8 (no overtime)

Average hourly pay = $17.825 per hour

Average number of days worked per year, per person = 236

You, as Big Boss, are confronted with balancing what workerswant, in this case more money and time off, with the cost of laborand competitive pressures.

Using the numbers given above:

1. What is the annual cost of a 2.15% increase in wages?

2. What is the annual cost of giving all 278 hourly workers 1additional paid holiday (8 hours pay)?

3. If our total hourly labor currently amounts to 20% of ourannual production cost, what is the total current cost ofproduction for 1 year?

4. How do you, Big Boss, propose paying for the wage increase andadditional holiday. You cannot raise prices for your products andsales volume forecasts are flat.