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 Save Answer $293,250 $2,639,250 $1,086,750 $120,750

Human Resources Summary

	Andrews	Baldwin	Chester	Digby
Needed Complement	794	325	462	575
Complement	794	325	462	575
1st Shift Complement	459	213	314	339
2nd Shift Complement	335	112	148	236
Overtime %	0.0%	0.0%	0.0%	0.0%
Turnover Rate	6.9%	8.0%	6.1%	10.0%
New Employees	55	26	28	80
Separated Employees	84	87	68	0
Recruiting Spend	$1,000	$2,500	$5,000	$0
Training Hours	80	40	80	0
Productivity Index	111.6%	118.5%	131.3%	100.0%
Recruiting Cost	$109	$91	$168	$80
Separation Cost	$420	$437	$341	$0
Training Cost	$1,270	$260	$739	$0
Total HR Admin Cost	$1,800	$787	$1,248	$80
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%