To calculate the total recruiting expense for the company, let's break down each component step-by-step.
### 1. First Year Fee
The first year fee is a percentage of the employee's annual salary.
- Annual salary: \$160,000
- Percentage for first year fee: 10%
The first year fee is calculated as:
[tex]\[ \text{First Year Fee} = \[tex]$160,000 \times 0.10 = \$[/tex]16,000 \][/tex]
### 2. Real Estate Fee
The real estate fee is a percentage of the house's selling price.
- Selling price of the house: \$380,000
- Percentage for real estate fee: 6%
The real estate fee is calculated as:
[tex]\[ \text{Real Estate Fee} = \[tex]$380,000 \times 0.06 = \$[/tex]22,800 \][/tex]
### 3. Family Travel Cost
The family travel cost is based on the number of family members and the cost per person.
- Number of family members: 4
- Travel cost per person: \$400
The total family travel cost is calculated as:
[tex]\[ \text{Family Travel Cost} = 4 \times \[tex]$400 = \$[/tex]1,600 \][/tex]
### 4. Interview Costs
The interview costs are incurred for three candidates (including the hired one).
- Interview cost per person: \$2,000
- Number of candidates: 3
The total interview costs are calculated as:
[tex]\[ \text{Total Interview Costs} = 3 \times \[tex]$2,000 = \$[/tex]6,000 \][/tex]
### 5. Job Posting Fee
The job posting fee is a fixed amount.
- Job posting fee: \$1,000
### 6. Shipping Fee
The shipping fee is a fixed amount.
- Shipping fee: \$4,000
### 7. Total Recruiting Expense
Now, we sum all the individual costs to find the total recruiting expense:
[tex]\[ \text{Total Recruiting Expense} = \text{First Year Fee} + \text{Real Estate Fee} + \text{Family Travel Cost} + \text{Total Interview Costs} + \text{Job Posting Fee} + \text{Shipping Fee} \][/tex]
Substituting the values we calculated:
[tex]\[ \text{Total Recruiting Expense} = \[tex]$16,000 + \$[/tex]22,800 + \[tex]$1,600 + \$[/tex]6,000 + \[tex]$1,000 + \$[/tex]4,000 = \$51,400 \][/tex]
Therefore, the total recruiting expense is:
[tex]\[ \$51,400 \][/tex]
