The expected hardship incurred by Spendbig Company is the possible payout of overtime compensation to the other three maintenance mechanics as the company would be forced to compensate the remaining mechanics with overtime pay for any hours accrued after 40 hours worked. Furthermore redistributing the shift to the other three mechanics forces each to work two Saturdays a month exceeding his or her regularly scheduled one Saturday a month in a rolling month long period of time. Spendbig will incur an increase in both employee salary and employee taxes paid impacting the bottom line. Secondly, this imposition on the remaining members of the department could create a level of dissention causing losses in productivity, in turn impacting operations and profitability. The alternative to hire an additional employee to work only Saturdays will also increase salary taxation for the company.
The cost versus benefit of granting Mr. Sellick's request is in favor of denying the request for the benefit of day-to-day operations. …
