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monitta
2 months ago
8

Assume Baldwin Corp. is downsizing the size of their workforce by 15% (to the nearest person) next year from various strategic i

nitiatives. Baldwin is planning to conduct exit interviews to learn 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 $5000. How much will the company pay in separation costs if these exit interviews are implemented next year?
Business
1 answer:
marusya05 [3.7K]2 months ago
3 0

Answer:

The organization will incur $5,100 for each employee regarding separation fees should these exit interviews take place next year

Explanation:

Information provided in the question:

Expected reduction in staff = 15% = 0.15

Cost of conducting exit interviews = $100

Standard separation cost = $5,000

Now,

Total separation cost for each employee = Cost of exit interviews + Standard separation cost

= $100 + $5,000

= $5,100

Therefore,

The organization will incur $5,100 for each employee regarding separation fees should these exit interviews take place next year

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