Question

22. Labor budget: calculating the fixed labor budget. Instead of the benefits stated in Exhibit 1.4e, assume that all benefits are 21% and all raises are 3.5% and calculate the fixed labor budget for January, February, and March. Assume that all the other assumptions in the exhibit remain the same. Explain why some salaries and benefits change from month to month and others do not

Answer 1

Period 1 Position Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Physician 1 30,000 31,500 31,500 31,500 31,500 31,500 31,500 31,500 31,500 31,500 31,500 31,500 Physician 2 22,000 22,000 22,000 22,000 22,000 22,000 23,100 23,100 23,100 23,100 23,100 23,100 Physician Assistant 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,750 1,750 Nurse Practitioner 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,750 1,750 Admininstrator staff 1,667 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 1,750 Office staff1 1,042 1,094 1,094 1,094 1,094 1,094 1,094 1,094 1,094 1,094 1,094 1,094 Office staff2 1,875 1,875 1,875 1,875 1,875 1,969 1,969 1,969 1,969 1,969 1,969 1,969 Jan | 31,500 23,100 1,750 1,750 1,750 1,094 1,969 Period 2 Feb Mar 33,075 33,075 23,100 23,100 1,750 1,750 1,750 1,750 1,838 1,838 1,149 1,149 1,969 1,969 Reason for increasing the salary on different period is on account of different date of increment for each of the person. This may be due to different date of joining