Estimating the average annual compensation of production

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Reference no: EM13100238

If a company pays a production worker a base wage of $22,000 and a piecework incentive of $1 per pair, if a production worker's annual productivity is 5,000 pairs per year, and if a plant's reject rate averages 5%, then the average annual compensation of production workers would be
None of the above.
$26,850.
$21,150.
$27,000.
$26,750 (because workers do not receive a piecework incentive on pair rejected due to defects).

Reference no: EM13100238

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