How does the absentee/annual salaries ratio compare to the U.S. plant? Based on the data you have what accounts for the difference?
How does the absentee/annual salaries ratio compare to the U.S. plant? Based on the data you have what accounts for the difference?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
have to compare two plants from the same company, one is a plant in Canada and one is in the U.S. (ALL NUMBERS ARE ALREADY IN CANADIAN).
Here is the data
CANADA:
| Yearly Cost of Absenteeism | $480,244 |
| Total Salary | $7,766,096 |
| Percentage of Salary | 6% |
| Number of Working Days | 251 |
| Average Salary Per Day | $289.16 |
US PLANT:
| Total U.S. Salaries | $6,360,000 |
| Average Salary | $69,141.43 |
| Work Days | 249 |
| Average Salary Per Day | $277.68 |
| Total Cost of Absents | $312,386 |
Extra Calculations:
| Average Diff between CAN and US | 4% |
| Absence Cost Diff between CAN and US | 35% |
QUESTION: How does the absentee/annual salaries ratio compare to the U.S. plant? Based on the
data you have what accounts for the difference?
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