Step 1—Each position will get a merit increase in January. Calculate their new base salary.
Note: You may practice manually if you'd like to see if you get the same answer when you complete it in the spreadsheet. Formulas MUST be used in MS Excel for any cells requiring calculations.
Salary per year
Step 2—They will need to reduce the number of hours for the department to 36 hours per position for the remaining 15 weeks of the year. What is the new salary for each position?
Salary in September
Salary at 36 hrs/week
Step 3—How much did the company save by cutting back each position by 4hrs/week for the remainder of the year?
Salary at 40hrs/week
Salary at 36hrs/week
New Yearly Salary
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