Question

Please answer correctly and round the answers to the nearest HUNDREDTHS place

Hiring a Mix of Entry-Level Workers and Skilled Candidates under a Skill-Base Pay Program A product distribution company has recently adopted a highly complex automated operations management system with an artificial intelligence component that requires highly skilled workers. Company growth is strong and it is expected to increase through the next ten years, requiring it to build additional distribution centers. Initially, there were enough highly qualified job candidates with the necessary experience required to perform the job without requiring company investments in training. As growth continued the supply of similar job candidates relative to the company's need was low. This labor market reality led the company to establish a skill-based pay system. The company's analysis of the labor market enabled them to project the mix of employees that will be available (those who are already fully qualified, needing little training, and those who have the potential to perform well, but who do not have the required skills to perform the jobs). The company offers pay that is $23.00 on an hourly basis to entice the best qualified candidates to accept job offers. Those new hires are productive right from the start with little company training investment . The company offers the other new hires starting pay at 12 percent below that rate because of the extensive training needed before they can perform their jobs. Finally, the company employs 450 workers of whom 40 percent are paid above the market average and 60 percent are paid below the market average. Over the next year, the company plans to hire 70 additional employees of whom 20 percent are expected to be paid above the market rate and 80 percent are expected to be paid below the market rate. (Round your answers to the nearest hundredths place.) (a) The hourly pay rate for highly skilled workers is $ 23.00 (b) The hourly pay rate for workers who are building skills through training is $ 20.24. Based on 160 monthly work hours, the total cost of monthly wages for (Round your answers to the nearest hundredths place.) (a) current highly skilled workers is $ 662,400.00 (b) current workers who are building skills through training is $ 874,368.00 Based on 160 monthly work hours, the total cost of monthly wages for. (Round your answers to the nearest hundredths place.) (a) the newly hired workers (expected to be hired over the next year) who are highly skilled will be s (b) the newly hired workers workers (expected to be hired over the next year) who are building skills through training will be

Answer 1

Highly Skilled workers are those workers which are qualified candidates, Since hourly pay rate to qualified candidates is $23 hence

(a) The hourly pay rate for highly skilled workers is $23.00

(b) The hourly pay rate for workers who are building skills through training is $20.24

Working: 12% below the hourly rate pay to highly skilled workers
= $23.00 * (1-12%)
= $23.00 * 88%
= $20.24

The Total Cost of monthly wages for:-
(a) current highly skilled workers is $662,400

Working: 450 workers * 40% * $23 /hour * 160 hours
= $662,400

(b) current workers who are building skills through training is $874,400

Working: 450 workers * 60% * $20.24 /hour * 160 hours
= $874,368
= $874,400 (Rounding to nearest hundredths place)

The Total Cost of monthly wages for:-
(a) the newly hired workers (expected to be hired over the next year) who are highly skilled will be $51,500

Working: 70 workers * 20% * $23 /hour * 160 hours
= $51,520
= $51,500 (Rounding to nearest hundredths place)

(b) the newly hired workers (expected to be hired over the next year) who are building skills through training will be $181,400

Working: 70 workers * 80% * $20.24 /hour * 160 hours
= $181,350.40
= $181,400 (Rounding to nearest hundredths place)