Need help with only question #1 and #2 please!!!

hint is listed below:

World Measurement is the global leader in product testing for safety. The recent problem with Chinese-made toy products (for example, Mattel recalled 19 million toys with evidence of lead paint) combined with the global recession has caused a 7 percent decline in sales and a 12 percent decline in net profits. The president of the company, Lewis Jacobs, is convinced that he must get concessions from the workers if World Measurement is to compete effectively with increasing foreign competition. In particular, Jacobs is displeased with the cost of employee benefits. He doesn't mind conceding a competitive wage increase (maximum 3 percent), but he wants the total compensation package to cost 3 percent less. The current costs are shown in@ Exhibit 12.13. 2. Pension, insurance, and other agreed-upon payments (employer's share only) a. Pension plan premiums and pension payments not covered by $1,898 insurance-type plan (net) b. Life insurance premiums; death benefits; hospital, surgical, $1,855 medical, and major medical insurance premiums; etc. (net) c. Short-term disability $108 d. Salary continuation or long-term disability $74 e. Dental insurance premiums $66 f. Discounts on goods and services purchased from company by $35 empioyees 9. Employee meals furnistied by company $0 h. Miscellaneous payments (compensation payments in excess of $31 legal requirements, separation or termination pay allowances, moving expenses, etc) 3. Paid rest periods. lunch nerinde Your assistant has surveyed other companies that are obtaining concessions from employees. You also have data from a consulting firm that indicates employee preferences for different forms of benefits () Exhibit 12.14). Based on all this information, you have two possible concession packages that you can propose, labeled "Option 1 " and "Option 2" () Exhibit 12.15). Page 467 EXHIBIT 12.15 Two Possible Packages for Cutting Benefit Costs Option 1 Implement Copay for Benefit Pension Amount of Copay Hospital, surgical, medical, and major medical premiums Dental insurance premiums Reduction of Benefit $400.00460.0095.00 Eliminate 10 -minute paid break (workers leave work 10 minutes earlien) Eliminate one paid holiday per year Coordination with legally required benefit social security coordinated with Lightning Industries pension plan Option 2 Improved claims processing: Unemployment compensation Workers' compensation Longterm disability Require probationary period (one yean) before eligible for: Discounts on goods Employee meal poid by company Contributions to employee thrift plans. Deductible (\$100 per incident): Lie insurance, death benefits, hospital, etc. Dental insurance Copay Amount of Hospital, surgical, medical and major medical premiums Copay from various insurance carriers and other information sources ( Exhibit 12.16). 2. Which package should you recommend to Jacobs? Why? 3. Which of the strategies do you think will require less input from employees in terms of their reactions? EXHIBIT 12.16 Analysis of Cost Implications for Difforent I've had a few questions about Chapter 12 case and how to "get started" on it. My suggestion is to create a simple spreadsheet and list out each item noted in Table 12.15. Next, if the option provides a $ amount, enter that for the savings. If there is no $ amount listed...go to Table 12.16 and note the % of savings for the item. Then go to table 12.13 (current cost) and find the item then enter the $ you calculate. For example....in Table 12.16, the "Deductible (\$100 per incident)" for Option \#2 is a 'red herring'. Use the percentages of discount (i.e. 15% for Dental) to determine the savings. For example... Option \#2 for "Dental Insurance" would be $6615%=$9.90 savings. Option #1, Dental savings would be $95 since they gave you the actual $ amount in Table 12.15. You need to use the information between the current cost (12.13) and the choice of options (12.15) then the savings (12.16) in \$ OR \% of savings (which ever one they have provided in 12.15). As noted above, I find it easiest to create a simple spreadsheet then calculate the totals for Option \#1 and Option \#2. When you submit your case, be sure to provide the details on how you determined the cost for Option \#1 and Option #2... don't just provide your $ for each. One more hint.....the 10-minute paid break does not affect the cost structure since employees leave 10 minutes early