Mr X, the proprietor of a small engineering workshop producing a specialit product by employing 5 skilled workers, is considering the introduction of some incentive scheme either Halsey Scheme or Rowan Scheme of wage payment for increaseing the labour productivity to cope with the increased demand for the product by about 25 per cent. He feels that if proposed incentive Scheme could bring about an average of 20 per cent increase over the present earning of the workers, it could act as sufficient incentive for them to produce more and he has accordingly given this assurance to the workers. As a result of this assurance, an increase in productivity has been observed as revealed by the following figures for the current month: Hourly rate of wages (guaranteed) $2.00 Average time for producing 1 piece by one worker at the previous performance 2 hours (Mr X desires that this time be considered as time allowed for the purpose of incentive scheme) No. of working days in the month No. of working hours per day for each worker 8 Actual production during the month 625 25 You are required to: (a) Calculate effective rate of earnings per hour under Halsey Scheme and Rowan Scheme; (b) Calculate the savings to Mr X in terms of direct labour cost per piece under the above schemes; (c) Advise Mr X about the selection of the scheme to fulfil his assurance