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MerTon Inc

Question 32

Multiple Choice

MerTon Inc.decides to reduce labor costs by using exit incentives to encourage some of its senior, high-earning members to leave the organization.It replaces the employees who quit with new employees and pays them low wages.Which of the following statements is most likely true in this scenario?


A) The number of employees being paid red circle rates will increase.
B) The salary range midpoint of the company is lesser than the compa-ratio.
C) The salary range midpoint of the company is higher than the actual salary paid.
D) The compa-ratio of the company is greater than one.

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