2. The board of the J Ltd. has been appraised by the General Manager (HR) that the employee attrition rate in the company has increased. The…

2. The board of the J Ltd. has been appraised by the General Manager (HR) that the employee attrition rate in the company has increased. The following facts has been presented by the GM(HR): (1) Training period of the new recruits is 50,000 hours. During this period their productivity is 60% of the experienced workers. Time required by an experienced worker is 10 hours per unit. (2) 20% of the output during training period was defective. Cost of rectification of a defective unit was - 25. (3) Potential productive hours lost due to delay in recruitment were 1,00,000 hours. (4) Selling price per unit is 180and P/V ratio is 20%. (5) Settlement cost of the workers leaving the organization was - 1,83,480. (6) Recruitment cost was - 1,56,340 (7) Training cost was - 1,13,180 You being an associate finance to GM(HR), has been asked the following questions: