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Will the company be able to maintain the sales/income increases to support your proposed pay increases annually? How/why?
Consider / address the percentage of sales/income for the organization in year 1 through year 3. You are not required to project the company sales/income volume but address the guiding principles of total revenue to cost of compensation / benefits the organization will need.
Info about the hotel
You have a benefit eligible population of 120 employees (salary, full time, part time) with a gross annual payroll of $45 million. Your target benefit cost for all discretionary benefits is 22% of gross payroll.
$30 million = rooms
$15 million = food and beverage
$45 million = Total annual revenue
$9.9 million = Benefits Budget
Hotel MidWest will be able to maintain sales and increases it annual proposed pay in wages, throughout year one to year three. The salary scale is within employment standards for the organization global region in the state of Illinois.
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