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Archive Delete Junk Reply Reply All Forward Flag Inbox (23) Sent Drafts (3) Flagged alboxes Search sort by Date v Heidi Bertels To: Heidi Bertels Comp-XMS Exam Points: 10 2006 Capsim Management Simulations, Inc.8 Assume Baldwin Corp. is downsizing the size of their wontore by 15% (to the nearest person) next year from various strategic initiatives. Baldwin is planning to conduct exit interviews to leam more about how they can improve in processes and increase productivity. The exit interviews are estimated to cost $100 per employee in additional to normal separation costs of S5000, how much wn the company pay in separation costs if these exit interviews are implemented next year? Select: 1 Save Answer $2.544.900 $1,047,900 $184.800 s448-800 55 East Monroe, Suite 3210 Chicago, IL 60603 USA and Canada 877-477-8787 (Others 1-312-477-7 Capsim Management Simulations, Inc. 2016 All Rights Reserved. MB, Capsim@ and Capsim coms. U

Explanation / Answer

Details Amt $/Nos Needed compliment of Baldwin =587 Overtime % is 0 for Baldwin So total workforce strength =587 Reduction in Manpower =587*0.15= 88 nos Cost of Exit interview per person =                       100 Normal separation cost per person                   5,000 Total Separation cost per person                   5,100 Total Separation cost next year=88*5100= $          448,800 So the correct option is $448,000

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