April Fowler
6/13/2020
BUSM553
“Your Turn: World Measurement”
1. Cost out these packages given the data in Exhibits 1 and the information obtained from
various insurance carriers and other information sources.
According to the percentage of savings for each benefit, the dollar savings of Option 1 is as
follows:
Direct cost savings from copays paid by employees
• Pension 300
• Hospital 350
• Dental insurance premiums 75
Cost savings from benefit reductions
• Eliminating ten breaks by allowing workers to leave 10 minutes earlier cancels each other
out, so there are no cost savings there.
• Reduction in paid holidays (initially nine days at $973 per employee ) but with a decrease
