An Organization Uses Scanlon Plan to Provide Incentives to Employees

Multiple Choice

An organization uses Scanlon plan to provide incentives to employees.The workers produce parts worth $5 million.The target ratio set by the organization is 30%.The employees will be given a bonus if the actual labor costs are less than:

A) $0.5 million.
B) $1 million.
C) $1.5 million.
D) $2 million.
E) $2.5 million.