Assume Digby Corp. is downsizing the size of their workforce by 10% (to the nearest person) next year from various strategic initiatives. Digby 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? Select : 1

$318,240

Explanation:

Calculation to determine How much will the company pay in separation costs if these exit interviews are implemented next year

First step is to calculate the Seperation cost per employee

Seperation cost per employee=$5,000+$100

Seperation cost per employee=$5,100

Now let calculate How much will the company pay in separation costs

Total cost =(624*10%)*$5,100

Total cost =62.4*$5,100

Total cost =$318,240

Note that the Total Employee of 624 was given in Complement

Therefore The amount that the company will pay in separation costs if these exit interviews are implemented next year is $318,240

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