For example , the sample graph below might tell the following story : In Year 2 the demand for our kayaks was nearly 2000 more than we were able to build , and we expected this demand Number Kayaks Produced VS Sold to continue to grow We decided to increase capacity by 15000 adding one additional over , and we hired 15 additional machine operators . Our production increased dramatically 14000 and almost doubled to approximately 14,000 kayaks per 13000 year. Unfortunately, sales did not continue to grow as 12000 quickly as we hoped and recently levelled off at about 10,000 kayaks . We are paying to manufacture and store 12000 4,000 more kayaks than we can currently sell . Although we 10000 expect sales to pick up in a couple years , we have decided 9000 to temporarily shut down one over and lay off the 15 8000 machine operators currently working on that oven . We expect that this decision will help us to align our sales and 7000 production over the coming year and will allow us to 6000 increase capacity when sales grow later . 5000 Yr1 Yr2 Yr4 Yr5 Yr6 -Sold Produced Estimate the annual savings of laying off the 15 machine operators and reducing production by 4,000 kayaks. The hourly labour rate is $18/hr, the work week is 40 hours, employees have 2 paid weeks vacation each year, the cost of benefits is 20% of payroll, and raw materials and parts cost $100 per kayak . The estimated annual savings for company y will be $443,200 Based on the Ontario Employment Standards Act , how much termination pay in leu of notice , and how much severance pay would each employee be entitled to receive if they were all hired exactly four years ago ? AND What is the total financial cost to permanently lay off the 15 workers ? Termination pay= 15 workers *18hours* 40 hours a week* 4 weeks(notice period) Termination pay = $ 43200 No severance pay since workers worked for less than 5 years . In this case employees were hired 4 years ago , no severances is to be given