Wages and Benefits Math Problem

Stuff Given:

278 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 workers want, in this case more money and time off, with the cost of labor and 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 workers 1 additional paid holiday (8 hours pay)?

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

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