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?

Select : 1

$192,780

$1,735,020

$714,420

$79,380

Human Resources Summary

	Andrews	Baldwin	Chester	Digby
Needed Complement	714	463	271	378
Complement	714	463	271	378
1st Shift Complement	492	322	199	303
2nd Shift Complement	222	141	72	74
Overtime %	0.1%	0.0%	0.0%	0.0%
Turnover Rate	6.2%	10.0%	8.0%	6.0%
New Employees	44	46	22	23
Separated Employees	501	89	110	123
Recruiting Spend	$5,000	$0	$2,500	$5,000
Training Hours	80	0	40	80
Productivity Index	117.5%	100.0%	118.3%	130.4%
Recruiting Cost	$266	$46	$76	$137
Separation Cost	$2,505	$444	$548	$615
Training Cost	$1,142	$0	$217	$604
Total HR Admin Cost	$3,913	$491	$840	$1,356
Labor Contract Next Year
Wages	$31.04	$31.04	$31.04	$31.04
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%