The correct answer is B. $197,541

What would the total recruiting cost to be for Baldwin next year if the current year number of employees is 480 and the current year recruiting spend is $5000?

The next year's recruitment cost is calculated as follows:

Recruitment cost next year = (Baseline spend + Current year recruitment spend + Next year additional expenditure) * Expected number of new employeesRecruitment cost next year = (Baseline spend + Current year recruitment spend + Next year additional expenditure) * Expected number of new employees

Expected number of new employees = Current year number of employee * Turnover rateExpected number of new employees = Current year number of employee * Turnover rate

Expected number of new employees=480∗6.3314100=30.391Expected number of new employees=480∗6.3314100=30.391

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Therefore:

 Recruitment cost next year=(1,000+5,000+500)∗30.391 Recruitment cost next year=(1,000+5,000+500)∗30.391

{MathJax fullWidth='false' \text{Recruitment cost next year = \$197,541}