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The Chester's workforce complement will grow by 20% (rounded to the nearest person) next year. Ignoring downsizing from automating, what would their total recruiting cost be? Assume Chester spends the same amount extra above the $1,000 recruiting base as they did last year. Select: 1A. $606,000B. $3,020,000C. $505,000D. $3,624,000

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Answer:

A. $ 606,000

Explanation:

Baseline spend, B = $ 1000

Current year recruiting spend, R = $ 5000

Additional spend next year, A = 0

Number of new employees needed for next year, N = 504*20% = 101 (rounded off)

Recruiting spend next year = N * (B + R + A) = 101 * ( 1000+5000+0) = $ 606,000

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