Company B loses $1,575 for every employee who quits before 90 days. What is the total amount the company will lose if 2 employees quit before 30 days, 1 employee quits on Day 41, and 1 employee quits on Day 100?
The Correct Answer and Explanation is :
Company B incurs a loss of $1,575 for each employee who quits before completing 90 days of employment. To determine the total loss when employees quit at various times, we need to consider only those who leave within the first 90 days.
Scenario Breakdown:
- 2 employees quit before 30 days: Both employees left within the first 30 days, so the company loses $1,575 for each.
- 1 employee quits on Day 41: This employee left before reaching 90 days, resulting in a loss of $1,575.
- 1 employee quits on Day 100: This employee completed 100 days, exceeding the 90-day threshold. Therefore, the company does not incur a loss for this employee.
Calculation:
The total loss is calculated by summing the losses for the employees who quit within the first 90 days:
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Conclusion:
The company will lose a total of $4,725 due to the three employees who quit before completing 90 days of employment.