ECONOMICS

Detailed explanation-1: -According to Emerson, bonus need not be paid to those workers who efficiently are less than 66.67 per cent. Upto 66.67 per cent efficiency, bonus will not be paid but minimum wages as per time are to be paid. The rate of bonus will increase along the increase in efficiency.

Detailed explanation-2: -If the worker does a job in less than the standard time, that is, if his efficiency is greater than 100%, he will get the wages for the actual time spent by him plus 20% of the wages earned plus one per cent for every one increase in the efficiency percentage.

Detailed explanation-3: -The worker’s efficiency can be determined by dividing the time taken by the standard time. As efficiency is below 67% the worker is entitled to only time wage, thus, Earnings = 10 x 2 = 20.

Detailed explanation-4: -The formula to calculate the bonus is: Efficiency Bonus ($) = [((Qualifying IPLV efficiency for chiller)-(Actual IPLV efficiency of chiller)) / 0.01] X $2.90.