Purchase Solution

Analysis of a Salary Scenario

Not what you're looking for?

Ask Custom Question

An internal study at Mimeo Corporation; a manufacturer of low end photocopiers, revealed that each of its workers assembles 3 photocopiers per hour and is paid $3 dollars for each assembled copier. Although the company does not have the resources needed to supervise the workers, a full time inspector verifies the quality of each unit produced before a worker is paid for his or her output. You have been asked by your supervisor to evaluate a new proposal designed to cut costs. Under the plan, workers would be paid a fixed wage of $8 per hour. Would you favor the plan? Explain.

Purchase this Solution

Solution Summary

Fixed Salary versus Variable Salary

Analysis of two possible salary scenarios. Quantitative versus qualitative factors.

Solution Preview

Solution:

Currently employees average income per hour is $9 (calculated $3 x 3 photocopiers). So initially it would appear that the firm is saving money my switching to a flat salary of ...

Purchase this Solution


Free BrainMass Quizzes
Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.