Hungry Dawg Restaurants

Initial Conditions:
Number of Covered Employees
Average Claim per Employee
Amount Contributed per Employee
Number of
Month Employees
1
18,904
2
19,282
3
19,667
4
20,061
5
20,462
6
20,871
7
21,289
8
21,714
9
22,149
10
22,592
11
23,043
12
23,504

Employee
Contributions
$2,362,958
$2,410,217
$2,458,421
$2,507,589
$2,557,741
$2,608,896
$2,661,074
$2,714,295
$2,768,581
$2,823,953
$2,880,432
$2,938,041

18,533
$250
$125
Avg Claim
per Emp.
$252.50
$255.03
$257.58
$260.15
$262.75
$265.38
$268.03
$270.71
$273.42
$276.16
$278.92
$281.71

Assumptions:
Increasing
Increasing
Constant

2% per month
1% per month

Total
Claims
$4,773,174
$4,917,324
$5,065,827
$5,218,815
$5,376,423
$5,538,791
$5,706,063
$5,878,386
$6,055,913
$6,238,802
$6,427,214
$6,621,315
Total Company Cost

Company
Cost
$2,410,217
$2,507,107
$2,607,406
$2,711,226
$2,818,682
$2,929,895
$3,044,989
$3,164,091
$3,287,332
$3,414,849
$3,546,782
$3,683,275
$36,125,850