The following budgets are set for the compensation task:
| Organizational Unit (OU) | Merit Increase Budget by OU | Cost of Living Budget by OU |
|---|---|---|
| Division A | 3% | 5% |
| Division B | 4% | 4% |
| Division C | 3.5% | 3.5 |
The following users are in the compensation plan:
The decimals of precision that are used for percentages in compensation is 2.
The following allocations are given in the compensation plan:
| User | Merit Increase | Cost of Living |
|---|---|---|
| User 1 | 3% (300 USD) | 4% (400 USD) |
| User 2 | 4% (800 GBP; 1200 USD) | 5% (1000 USD; 1500 USD) |
| User 3 | 3.5% (1050 USD) | 3% (900 USD |
| User 4 | 2.5% (2080 USD) | 2% (1664 USD) |
| Total | 4630 USD | 4464 USD |
The average budget increase is calculated by dividing the total allocations by the total original salaries. The following average budget increases result from the compensation plan:
| Division | Merit Increase | Cost of Living |
|---|---|---|
| Division A (Users 1 & 4) | (300 + 2,080) / (10,000 + 83,200) = 2.55% | (400 + 1,664) / (10,000 + 83,200) = 2.21% |
| Division B (User 2) | 1,200 / 30,000 = 4.00% | 1,500 / 30,000 = 5.00% |
| Division C (User 3) | 1,050 / 30,000 = 3.50% | 900 / 30,000 = 3.00% |
| Overall | (300 + 1,200 + 1,050 + 2,080) / (10,000 + 30,000 + 30,000 + 83,200) = 3.02% | (400 + 1,500 + 900 + 1,664) / (10,000 + 30,000 + 30,000 + 83,200) = 2.91% |