question archive Digby's turnover rate for this year is 6
Digby's turnover rate for this year is 6
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Digby's turnover rate for this year is 6.28%. This rate is projected to remain the same next year and no further downsizing will occur from automating. Digby 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. What would the total recruiting cost be for Digby next year?
a) $194,842
b) $177,129
c) $230,268
d) $212,555
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We will assume the current year number of employees is 434 and the current year recruiting spend is $5000.
| Current compliment | 434 |
| Turnover rate | 6.28% |
| Employees to be recruited | 27.2552 |
| Current recruitment spend | $5,000 |
| Recruiting base | $1,000 |
| Additional recruitment spend | $500 |
| Total recruitment spend per employee | $6,500 |
| Total recruiting cost | $166,159 |
|---|
The correct answer is b. (we must assume the difference is due to rounding)
