Question 4 Joey is trying to make sure he meets the standards he has set...
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Question 4 Joey is trying to make sure he meets the standards he has set for labour expenses at his business. He believes each product can be built in 2.33 man-hours and each man-hour should cost $20. He is considering the following options for his six workers: Option A-hourly wages with small bonuses Hourly wage: $19 Annual hours per worker: 2,000 Expected production: 5,150 units Expected product defect rate: 1% Expected performance bonuses: $0 Expected year-end bonuses: $1,000 per worker Option B-hourly wages with large bonuses Hourly wage: $17 Annual hours per worker: 2,200 Expected production: 6,200 units Expected product defect rate: 2.5% Expected performance bonuses: $75 per 100 units Expected year-end bonuses: $3,000 per worker Analyze and discuss the pros and cons of each option. Make recommendations to Joey (feel free to make other business recommendations, not limited to salary structure)
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