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Assume Chester Corp. is downsizing the size of their workforce by 20% (to the nearest person) next year from various strategic initiatives. Chester is planning

Assume Chester Corp. is downsizing the size of their workforce by 20% (to the nearest person) next year from various strategic initiatives. Chester 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 $547,740 $2,190,960 $902,160 $225,540

Andrews Baldwin Chester Digby
Needed Complement 513 589 552 484
Complement 513 589 552 484
1st Shift Complement 431 398 354 279
2nd Shift Complement 82 191 198 205
Overtime% 0.1% 0.0% 0.0% 0.0%
Turnover Rate 6.1% 6.2% 10.0% 8.0%
New Employees 31 166 98 77
Separated Employees 797 0 0 0
Recruiting Spend $5,000 $5,000 $0 $2,500
Training Hours 80 80 0 40
Productivity Index 115.2% 125.2% 100.0% 115.3%
Recruiting Cost $187 $998 $98 $268
Separation Cost $3,985 $0 $0 $0
Training Cost $821 $942 $0 $387
Total HR Admin Cost $4,993 $1,940 $98 $655
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%

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