Assume Baldwin Corp. is downsizing the size of their workforce by 15% (to the nearest person) next year from various strategic i
nitiatives. Baldwin is planning to conduct exit interviews to learn more about how they can improve in processes and increase productivity. The exit interviews are estimated to cost $100 per employee in additional to normal separation costs of $5000. How much will the company pay in separation costs if these exit interviews are implemented next year? Select: 1Save Answer $2,616,300 $191,100 $464,100 $1,077,300
1 answer:
Answer: $362,100
Explanation:
I could not find your exact question's details but I believe this can act as a reference.
Baldwin has 473 employees (given as the Complement). They plan to downsize by 15% which means they plan to retrench;
= 473 * 15%
= 70.95
= 71 people
The cost of retrenching one person is;
= 100 + 5,000
= $5,100
For 71 employees;
= 5,100 * 71
= $362,100
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