Question

Chester Corp. is downsizing the size of their workforce by 10% (to the nearest person) next year from various strategic initiatives.   How much will the company pay in separation costs if each worker receives $5,000 when separated?

Select: 1

	$894,000
	$100,000
	$2,235,000
	$250,000

HUMAN RESOURCES SUMMARY

	Andrews	Baldwin	Chester	Digby
Needed Complement	366	424	601	723
Complement	366	424	601	723
1st Shift Complement	284	279	401	369
2nd Shift Complement	82	145	200	354
Overtime%	0.0%	0.0%	0.0%	0.0%
Turnover Rate	6.8%	8.0%	6.2%	10.0%
New Employees	25	65	198	225
Separated Employees	49	0	0	0
Recruiting Spend	$5,000	$2,500	$5,000	$0
Training Hours	80	40	80	0
Productivity Index	112.3%	115.4%	124.7%	100.0%
Recruiting Cost	$149	$227	$1,186	$225
Separation Cost	$245	$0	$0	$0
Training Cost	$586	$339	$962	$0
Total HR Admin Cost	$980	$566	$2,148	$225
Labor Contract Next Year
Wages	$29.56	$29.56	$29.56	$29.56
Benefits	2,500	2,500	2,500	2,500
Profit Sharing	2.0%	2.0%	2.0%	2.0%
Annual Raise	5.0%	5.0%	5.0%	5.0%

Answer 1

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