Your software engineering director estimates that the division is spending an excess of 8% of its time on rework. The divison is made up of 250 technical staff making an average of $80,000 per year with a benefits multiplier of 1.4.

a. What is the annual cost of that excess re-work?

b. Your director wants to reduce the divisions annual cost of rework by $500,000. His preferred approach is to reduce the percentage of excess rework. What must the excess rework percentage be to meet your directors target?