Assume Digby Corp. is downsizing the size of their workforce by 10% (to the nearest person) next year from various strategic initiatives. Digby 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?

a. $297,330

b. $2,675,970

c.$1,101,870

d. $122,430

HUMAN RESOURCES SUMMARY Andrews 1,223 1,223 725 498 Digby 583 583 372 Baldwin Needed Complement Complement 1st Shift Complement 2nd Shift Complement 344 197 147 Chester 487 487 325 162 0.0% 6.5% 441 0.0% 6.0% 29 89 $5,000 80 129.8% 0.0% 8.0% 28 0.0% 10.0% 58 Turnover Rate New Employees Separated Employees Recruiting Spend Training Hours Productivity Index $5,000 80 116.6% $2,500 40 119.4% $0 100.0% Recruiting Cost Separation Cost Training Cost Total HR Admin Cost $2,648 $0 $1,957 $4,605 $96 $274 $275 $645 $176 $447 $779 $1.403 $58 $220 $0 $278 Labor Contract Next Year Wages Benefits Profit Sharing Annual Raise $31.04 2,500 2.0% 5.0% $31.04 2,500 2.0% 5.0% $31.04 2,500 20% 5.0% $31.04 2,500 2.0% 5.0% Starting Negotiation Position Wages Benefits Profit Sharing Annual Raise Ceiling Negotiation Position Wages Benefits Profit Sharing Annual Raise Adjusted Labor Demands Wages Benefits Profit Sharing Annual Raise