Digby's turnover rate for this year is 6.26%. This rate is projected to remain the same next year and no further downsizing will occur from automating. Digby plans to spend an additional $500 beyond the extra amount above the $1000 recruiting base it spent this year. The goal of this additional investment is to improve the quality of applicants. What would the total recruiting cost be for Digby next year?

a. $240,490

b. $221,990

c. $203,491

d. $184,992

(These are the only options available)

Human Resources Summary Andrews Baldwin Chester Digby Needed Complement 353 698 491 591 Complement 353 698 491 591 1st Shift Complement 353 403 290 389 2nd Shift Complement 0 294 201 202 Overtime % 0.0% 0.0% 0.0% 0.0% Turnover Rate 10.0% 10.0% 8.0% 6.3% New Employees 35 156 39 164 Separated Employees 377 0 165 0 Recruiting Spend $200 $0 $2,500 $5,000 Training Hours 0 0 40 80 Productivity Index 100.0% 100.0% 113.4% 122.3% Recruiting Cost $42 $156 $137 $982 Separation Cost $1,885 $0 $827 $0 Training Cost $0 $0 $393 $946 Total HR Admin Cost $1,927 $156 $1,357 $1,929 Labor Contract Next Year Wages $28.15 $28.15 $28.15 $28.15 Benefits 2,500 2,500 2,500 2,500