What kind of savings can a company expect from a Jackson Gainsharing Plan?

Follow the instructions on this sheet to calculate the savings (assuming a 10% increase in productivity), typically realized by Jackson Gainsharing Plan users. This is a calculation worksheet only and none of the information is saved. This information will not be used by W.M. Jackson & Co., Inc. for any purpose whatsoever. It is simply an exercise to illustrate potential savings. After you have filled in the fields, click on the calculate button. When it has calculated the savings and redisplayed your information, you may print this form out or enter new data for new calculations. Simply click the clear button when finished.

First estimate the value of sales for your company: $(A) $10,000,000
Now, estimate and accumulate the total labor costs for your company:
Direct Labor: $ $1,450,000
Indirect Labor: $ $500,000
Vacation Pay: $ $200,000
Holiday Pay: $ $100,000
Insurance Benefits: $ $400,000
Pension Plan: $ $300,000
Other Benefits: $ $50,000

Total: $(B) $3,000,000
Divide Item (B) by Item (A) to get a percentage:   (C) 30%
A 10% increase in productivity would be 10% of Item (C):   (D) 3%
The savings or increased profits for our company would be Item (D) multiplied by item (A): $ $300,000