The management of In and Out Limited are worried about their increasing labour turnover Log in the factory, and before analysing the causes and taking remedial steps, they want to have an idea of the profit forgone as a result of labour turnover in the last year Last year, sales amounted to $ 8,30,33,000 and the profit-volume ratio was 20 per cent. The total number of actual hours worked by the direct labour force was 4.45 Millions. As a result of the delays by the Personnel Department in filling vacancies due to labour turnover, 1,00,000 potentially productive hours were lost. The actual direct labour-hours included 30,000 hours attributable to training new recruits, out of which half of the hours were unproductive. The cost incurred consequent to labour turnover revealed on analysis the following: Settlement costs due to leaving Recruitment costs $ 4,38,200 Selection costs Training costs 2,67,400 1,27,500 3,04,900