Pete manages the nursing department of a local long-term rehabilitation center. He has positions for 200 nurses working under him. However, due to 35% annual turnover, he has a difficult time staying fully staffed. Caroline, the CEO of the facility pointed out to Pete that he needs to maintain full staffing in order for the facility to serve the maximum number of patients. She directs him to prepare a plan to lower the turnover rate to 20%. After doing a thorough review, Pete has determined that it costs him $2,000 to recruit and $3,000 to on-board a new nurse. If he is willing to spend all the money he saves by getting the turnover rate to 20%, how much would be the maximum Pete should spend on his new plan? Please show work in excel. Thanks! A. $350,000 B. $200,000 C. $175,000 D. $150,000
Pete manages the nursing department of a local long-term rehabilitation center. He has positions for 200 nurses working under him. However, due to 35% annual turnover, he has a difficult time staying fully staffed. Caroline, the CEO of the facility pointed out to Pete that he needs to maintain full staffing in order for the facility to serve the maximum number of patients. She directs him to prepare a plan to lower the turnover rate to 20%.
After doing a thorough review, Pete has determined that it costs him $2,000 to recruit and $3,000 to on-board a new nurse. If he is willing to spend all the money he saves by getting the turnover rate to 20%, how much would be the maximum Pete should spend on his new plan?
Please show work in excel. Thanks!
A. $350,000
B. $200,000
C. $175,000
D. $150,000
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