Suppose you were considering replacing 50 full-time programmers, each receiving the following annually:$60,000 salary$5,000 pension fund contributions$1,000 each in medical, life insurance, and dental plan paymentsEach programmer would be replaced by 3 part-timers, each working 20 hours per week at $10 per hour, with no benefits. Assuming the firm is in the 35% (federal plus state) tax bracket, and privately held, provide a consultant’s recommendation.
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