Critical Thinking 11 05 Crane Processing Company performs word processing services for business cents and dents in a university community. The work for business clients is fairly steady throughout the year. The work for students peaks grificantly in December and May as a result of term papers, research project reports, and dissertations Two years ago, the company attempted to meet the peak demand by ling part time help. This led to numerous errors and much customer section. A year, the company hired four experienced employees on a permanent basis in place of part-time help. This proved to be much better in terms of productivity and customer in But has caused an increase in annual parco significant decline in annual net income. Recently, Melissa Braun, a sales representative of Banister Services Inc, has made a proposal to the company. Under her plan, Baner will provide up to four experienced workers at a daily rate of 80 per person for an 8-hour workday. Banister workers are not available on an hourly bass Crane would have to pay only the daily rate for the workers used The owner of Crane Processing, Carol Holtasks you, as the company's accountant, to prepare a report on the expenses that are pertinent to the decision. If the Banister plan is adopted, Carol wil terminate the employment of two permanent employees and will keep two permanent employees. At the moment, each employee carns an awal income of $20,000. Crane pays 7.694 ICA taxes, 0.80% federal unemployment taxes, and 5.40% state unemployment aces. The unemployment taxes apply to only the first $5,000 of grossenings. Intion, Crane pays $30 per month for each eye for medical and dental insurance, Carol indicates that the Banister Services plans accepted, her needs for temporary workers will be as follows Number Working Months of Employees Days per Month January March 2 15 April-May 3 20 June-October 2 13 November-December 3 18 Answer the following (a) Prepare a report showing the comparative payroll expense of continuing to employ permanent workers compared to adopting the Banister Services Inc.pl BANISTER SERVICES INC. Months Cost CALCULATOR FULL SCREEN RCES April-May os June-October November December Total Cost art PERMANENT EMPLOYEES tudy Crane Processing Company would save $