1. Salem Corporation is considering implementing a 401k programfor its employees

1. Salem Corporation is considering implementing a 401k programfor its employees. The program plan will include the companymatching at 50% of the employees contribution up to 6%contribution. The Human Resources manager proposing this plan feelsit will reduce turnover improve morale and provide a competitiveedge when recruiting new employees. The HR manager has estimatedSalems annual contribution to be $300000 and the savings to be$70000 in employee turnover costs and improved performance.Management is concerned about this additional cost.