Reference no: EM133247017

Meals on Wheels

Assume you are the director of a nonprofit organization that delivers meals to elderly persons in their homes. The state reimburses you a flat rate per person. You provide three meals a day per person, 7 days per week, 365 days per year. Your staff includes two types of personnel; cooks and drivers, who each work fulltime, 5 days a week, on average and have 10 days off per year (paid) for vacation. They get 25% salary bonus if they are willing to work on weekends. Cooks get paid $17 per hour and drivers $14 per hour. Your organization contributes $100 per employee per month in health insurance, 5 percent of their salary to a pension plan, as well as paying the regular rates for Social Security and Hospital Insurance, OASDI (7.65%). Last year they contributed 5% of payroll in Workers'  Compensation and Unemployment Insurance. These fringe benefit percentages would generally apply to the total payroll (with overtime). Typically, cooks can prepare 3 meals per day for a maximum of 50 clients per day and drivers can deliver 3 meals per day for a maximum of 35 clients per day. What are the personnel costs of providing service to 200 persons every day?