Just looking for a few paragraphs to get a discussion rolling.
What arguments would you use to defend a fixed pay system such as union or government scale that had no performance measures? In contrast, what arguments would you use to persuade an organization to vary its pay rates based on individual job performance?© BrainMass Inc. brainmass.com October 17, 2018, 12:28 pm ad1c9bdddf
Fixed compensation and rewards help to simplify the compensation of workers. It also helps define the acceptable behaviors and expectations of the workers. Everyone is bound by the same rules, and as long as the people hired are talented and the best for the job, each is equal in terms of when and how they can be fired. Under this program, days off are part of the package and people who are taking more than the allowed are eligible for firing. There is no need to decide on how much work they produce, how much effort others have to put in to cover their shifts, or if they are competent. The template of expectations is simpler and based on active participation of the work.
For example, a company has ...
A discussion on the fixed compensation method vs the varying performance method of compensation.
Planning and Budgeting for Andre's Hair Styling
Please help with spread sheet and questions original only please.
Consider the following scenario:
Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Hair shampoo used on all clients is .40 per client. Assume that the only service performed is the giving of haircuts (including shampoo), the unit price of which is $12. Andre has asked you to find the following information.
Find the contribution margin per haircut. Assume that the barbers' compensation is a fixed cost. Show calculations to support your answer.
For this part I need an appropriate explanation.
Determine the annual break-even point, in number of haircuts. Support your answer with an appropriate explanation. Show calculations to support your answer.
What will be the operating income if 20,000 haircuts are performed? Show calculations to support your answer.
Suppose Andre revises the compensation method. The barbers will receive $4 per hour plus $6 for each haircut. What is the new contribution margin per haircut? What is the annual break-even point (in number of haircuts)? Show calculations to support your answer.View Full Posting Details