1. Ravi Shah is the food and beverage director at the St. Andrews Golf Course and Conference Center. The facility is a popular place for weddings, and Ravi finds that on many Friday and Saturday nights, the banquet space at St. Andrews is completely booked. That is good news, but Ravi also finds that Allisha, the one fulltime (paid $20.00 per hour) employee he has utilized as a supervisor for the banquet area is averaging 15 hours overtime per week.

Ravi is considering three alternative courses of action:

1. Maintain the status quo and pay Allisha for 45 hours per week.
2. Create a salaried position, schedule the employee who holds the position 55 hours per week, and pay that individual $50,000 per year.
3. Split the job into two parttime positions of 35 and 20 hours per week and pay these employees $22.50 per hour.

Assume the following:

• Overtime is paid at 1.5 times the normally paid rate.
• The operation's benefit package for parttime employees is 20 percent of the wages paid to them.
• The operation's benefit package for fulltime employees is 35 percent of the wages paid to them.
• All fulltime employees receive 2 weeks paid vacation per year.

1. Which of these three courses of action will cost the facility the most money? The least?

	Hours Worked	Pay per Hour	Pay per Week	Weeks in a Year	Pay Before Benefits	Benefits	Annual Pay with Benefits
Alternative 1
Alternative 1 Overtime
Total
Alternative 2
Alternative 3
Total