Question

Chester's turnover rate for this year is 6.29%. This rate is projected to remain the same next year and no further downsizing will occur from automating. Chester plans to spend an additional $500 beyond the extra amount above the $1000 recruiting base it spent this year. The goal of this additional investment is to improve the quality of applicants.

Required:
(A) What would the total recruiting cost be for Chester next year?

Answer 1

$219,096

Step-by-step explanation:

Additional amount = 1000 + 500*4 = $3000

Total amount = 3000*80 =$240,000

Increase in cost = $240,000*0.0629

= $15,096

Total recruiting cost next year = $204,000 + $15,096 = $219,096

Therefore the total recruiting cost be for Chester next year is $219,096