Severance Pay at Miller Furniture

Since its establishment in 1940, Miller Furniture, a family owned furniture retailer, has successfully honored its no layoff policy. Founders Robert and Frances Miller believed that the company's success depended, in large part, on its dedicated workforce. Ever since, family members have honored this tradition. In recent years, small family-owned furniture retailers have struggled to survive because large retail chains sell furniture at much lower prices. Recognizing this reality, the Miller family realizes that maintaining full staffing will lead to bankruptcy. Determined not to lay off employees, the Miller's decided to offer buyouts to its workforce of 410 employees.

Part 2

The number of employees would remain if 50 percent of the total workforce accepted the buyout offer

Employees who accept the buyout offer will receive 2 weeks of severance pay for each year of service. Of the total who accepted the buyout (carefully consider your answer to Question above), 15 percent completed 5 years of service percent completed 7 years of service, 25 percent completed 10 years of service, and 15 percent completed 15 years of service. The total weeks of severance will Miller Furniture pay: