Scanlon plans represent a group-level incentive plan that provides payouts based on whether the implementation of proposals for labor costs savings are successful. Among the important determining factors is the calculation of Scanlon ratios (labor costs / sales value of production). Scanlon ratios are compared to a standard. Payouts are made whenever the Scanlon ratio is less than the standard.

The Scanlon ratio for

2014

is

0.70,

and it is the standard for comparison. Assume that in

2015,

total labor costs amounted to

$36,000,000

and sales value of production (SVOP) amounted to

$70,000,000.

Also, assume that total labor costs will increase by

8.0

percent annually and SVOP will increase by

15.0

percent annually starting in

2016.

Part 2

a) The Scanlon ratio for

2015

will be

0.51

Round your response to the nearest hundredths place.

Part 3

b) The Scanlon ratio for

2016

will be

0.48

Round your response to the nearest hundredths place.

c) The Scanlon ratio for

2017

will be

0.45

Round your response to the nearest hundredths place.

d) The Scanlon ratio for

2018

will be

0.43

Round your response to the nearest hundredths place.

Please help with the last part

Part 4

a) The total dollars available for bonus payout in

2015

will be

$enter your response here.

b) The total dollars available for bonus payout in

2016

will be

$enter your response here.

c) The total dollars available for bonus payout in

2017

will be

$enter your response here.

d) The total dollars available for bonus payout in

2018

will be

$enter your response here.

Round your response to the nearest hundredths place.