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Incentive plans: formula for Rowan plan wages Let R = base time rate per hour, S = standard time for the job, and T = actual time taken. Using Rowan plan, write the total wages expression for the job.

Difficulty: Medium

Correct Answer: W = R T + ((S − T)/S) · R · T

Explanation:


Given
R = base rate per hour; S = standard time; T = actual time taken.


Concept (Rowan plan)
Bonus is proportional to the fraction of time saved and the actual time worked:Bonus = (Time saved / Standard time) × (R × T) = ((S − T)/S) × (R T)


Step-by-step
Total wages W = Time wages + BonusW = R T + ((S − T)/S) · R · T(Equivalently, W = R T (2 − T/S))


Why others are wrong
(b) is Halsey (100% share) type, not Rowan.(c) ignores actual time and bonus.(d) simplifies to R S (nonsensical here) and is not the Rowan expression.


Final Answer
W = R T + ((S − T)/S) · R · T.

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