Scanion plans represent a group-level incentive plan that provides payouts based on whether the implementation of proposals for labor costs savings are successful. Among the important determining factors is the calculation of Scanion ratios (labor costs/sales value of production). Scanion ratios are compared to a standard. Payouts are made whenever the Scanion ratio is less than the standard. The Scanlon ratio for 2014 is 0.50, and it is the standard for comparison. Assume that in 2015, total labor costs amounted to $50.000.000 and sales value of production (SVOP) amounted to $35,000,000. Also, assume that total labor costs will increase by 14.0 percent annually and SVOP will increase by 9.0 percent annually starting in 2016 a) The Scanion ratio for 2015 will be 1.43. Round your response to the nearest hundredths place b) The Scanion ratio for 2016 will be 1.49 Round your response to the nearest hundredths place c) The Scanion ratio for 2017 will be 1.55 Round your response to the nearest hundredths place d) The Scanion ratio for 2018 will be 1.63. Round your response to the nearest hundredths place a) The total dollars available for bonus payout in 2015 will be $ b) The total dollars avaliable for bonus payout in 2016 will be 1 c) The total dollars available for bonus payout in 2017 will be s d) The total dollars available for bonus payout in 2016 will be 5 Round your response to the nearest hundrlieths place
Scanion plans represent a group-level incentive plan that provides payouts based on whether the implementation of proposals for labor costs savings are successful. Among the important determining factors is the calculation of Scanion ratios (labor costs/sales value of production). Scanion ratios are compared to a standard. Payouts are made whenever the Scanion ratio is less than the standard. The Scanlon ratio for 2014 is 0.50, and it is the standard for comparison. Assume that in 2015, total labor costs amounted to $50.000.000 and sales value of production (SVOP) amounted to $35,000,000. Also, assume that total labor costs will increase by 14.0 percent annually and SVOP will increase by 9.0 percent annually starting in 2016 a) The Scanion ratio for 2015 will be 1.43. Round your response to the nearest hundredths place b) The Scanion ratio for 2016 will be 1.49 Round your response to the nearest hundredths place c) The Scanion ratio for 2017 will be 1.55 Round your response to the nearest hundredths place d) The Scanion ratio for 2018 will be 1.63. Round your response to the nearest hundredths place a) The total dollars available for bonus payout in 2015 will be $ b) The total dollars avaliable for bonus payout in 2016 will be 1 c) The total dollars available for bonus payout in 2017 will be s d) The total dollars available for bonus payout in 2016 will be 5 Round your response to the nearest hundrlieths place
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Scanlon plans represent a group-level incentive plan that provides payouts based on whether the implementation of proposals for labor costs savings are successful. Among the important
determining factors is the calculation of Scanion ratios (labor costs / sales value of production). Scanion ratios are compared to a standard. Payouts are made whenever the Scanion ratio is less than
the standard.
The Scanlon ratio for 2014 is 0.50, and it is the standard for comparison. Assume that in 2015, total labor costs amounted to $50,000,000 and sales value of production (SVOP) amounted to
$35,000,000. Also, assume that total labor costs will increase by 14.0 percent annually and SVOP will increase by 9.0 percent annually starting in 2016
1.43. Round your response to the nearest hundredths place
a) The Scanion ratio for 2015 will be
b) The Scanlon ratio for 2016 will be
1.49. Round your response to the nearest hundredths place
c) The Scanion ratio for 2017 will be
1.55. Round your response to the nearest hundredtha place
d) The Scanion ratio for 2018 will be 1.63. Round your response to the nearest hundredths place.
a) The total dollars available for bonus payout in 2015 will be
b) The total dollars available for bonus payout in 2010 will be
c) The total dollars available for bonus payout in 2017 will be S
d) The total dollars available for bonus payout in 2016 will be Round your response to the nearest hundredths place.
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