OSCM Assignment 8 - Increase in Minimum Wage We manufacture Rooty Tooty Frooty breakfast cereal at our factory in Toad Suck, AR. Our selling price is $2.20 per box, F.O.B. our shipping dock (our customers pay shipping expenses). Our gross profit margin is 40%. We pay our workers $8.25 per hour. Currently, the labor portion of our cost per box of cereal is $.215 (twenty one and one half cents). Beginning January 1, 2019, the minimum hourly wage will increase to $11.00. A. Calculate the labor cost per box of cereal after Jan I, 2019. 2S7 Round answers to 3 places. B. After Jan 1, 2019, what will be our total cost per box of cereal assuming all other non-labor costs remain the same? Round answer to 3 places. .607 C. If we are to make the same 40% gross profit margin, what will be selling price, after Jan 1, 2019? Round answer up to closest our new penny. D. Based upon annual sales of 6 million boxes, how much added labor costs will we experience per year when comparing 2019 to 2018? 9644,000-7,7al0, 000= ,7dd,000 20 points DKI Jan 2019 copyright OSCM Assignment 10 Planning Payroll Expenses (Summer) You will have many hats to wear in your job as Big Boss. Managing all expenses is critical to the survival of the enterprise for which you are responsible. Payroll and employee benefits are a large part of your expense budget, perhaps the largest. This assignment will provide to you a very elementary understanding of payroll expenses. Givens: 562 workers, 5-day work week, 8-hour work day, no overtime is budgeted, 10 days of paid vacation per employee, per year: 11 paid holidays per employee, per year average hourly pay = $14.75. Employee healthcare benefits = 31.8% of hourly wages; including all wages paid for holidays and vacation days. 1. Not counting holidays and vacation days, how many working days are there in the schedule shown above? SXS2=260 2, What is the labor cost for 1 hour of operation for all 562 employees? 8,1g950x 31.8% Ld tob 36.06 FA10, T3 4,75 x 56d 3. What is the annual cosf of labor for 1 employee, including vacatlon pay and holiday pay? d0 days K& hes=o0 es 4. What is the total, annual cost of healthcare for all workers? 5. What is the additional cost of wages (not benefits) if the number of paid holidays is increased from 11 to 12? 6. What is the annual cost of a 2.75% hourly wage increase for all 562 workers (calculate both wages and benefits)? Continue on next page