If the average cost per salaried employee increases by $4,000 in the Kitchen Department, what is the new average cost per employee in the department?
(more info: Salaried Employees:
Average # of employees: 2
Cost in Thousands: 52
Average Cost/Employee: 26
Hourly:
Average # of employees: 15
COst in thousands: 270
average cost/employee: 18
Total:
average # of employees: 17
cost in thousands: 322
average cost/employee: 18.9)
Answer is:
a) 17.4
b) 19.2
c) 19.4
d) 20.9
e) 22.9
??
19.2
To find the new average cost per employee in the Kitchen Department, we need to take into account the increase of $4,000 per salaried employee.
First, let's calculate the current total cost of the salaried employees in the Kitchen Department. Since the average cost per employee is $26, and the average number of employees is 2, the current total cost is $26 * 2 = $52.
Next, let's calculate the total cost of all employees in the Kitchen Department. Since the total cost is given as $322, and the total number of employees is given as 17, the total cost of all employees is $322 / 17 = $18.9 per employee.
Since we know that the average cost per salaried employee increased by $4,000, we can calculate the new total cost of the salaried employees. The new total cost of the salaried employees is $52 + ($4,000 * 2) = $52 + $8,000 = $8,052.
Now, let's calculate the new average cost per employee in the Kitchen Department. The new total cost of all employees is still $322, but the new total cost of the salaried employees is $8,052. Therefore, the new total cost of the hourly employees is $322 - $8,052 = -$7,730.
Finally, let's calculate the new average cost per employee in the Kitchen Department. The new average cost per employee is $7,730 / 17 = $454.7.
Now, let's compare this value to the given answer choices:
a) 17.4 – This is not the correct answer.
b) 19.2 – This is not the correct answer.
c) 19.4 – This is not the correct answer.
d) 20.9 – This is not the correct answer.
e) 22.9 – This is the correct answer.
Therefore, the new average cost per employee in the Kitchen Department is $22.9.