Net increase of income by providing an incentive to employee
Tital Company estimates that providing employees with a new health insurance package with an additional cost of $34,900 will increase productivity by 6%. Current production is at 12,000 units where selling price is $190, total cost amounts to $150 which is inclusive of $120 in variable costs per unit. Determine the net increase in income if the 6% additional productivity is realized.
a) $15,500
b) %28,800
c) $34.900
d) $50,400
e) None of the above